Bitcoin Falls to ‘Severe Fear’ on Aug 5 ETFs Over 168M
The Crypto Fear and Greed Index entered the “high fear” zone for the first time in two years, when US bitcoin trading funds reported $168.4 million in outflows on August 5.
An index measuring market sentiment for Bitcoin and the broader cryptocurrency industry fell 17 points out of 100 on Aug. 5 — the lowest since July 12, 2022.
The index was at 67 this time last week on July 29 – marking one of the biggest week-on-week declines in recent years.
It comes as spot Bitcoin (BTC) ETFs reported that $168 million was spent on August 5. Most of that came from the Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF at $69.1 million and $69 million, respectively, Farside Investors data shows.
The Greyscale Bitcoin Mini Trust, the VanEck Bitcoin ETF, and the Bitwise Bitcoin ETF posted inflows of $21.8 million, $3 million, and $2.9 million, respectively, while BlackRock's iShares Bitcoin Trust recorded zero.
However, spot ether (ETH) ETFs saw inflows of $48.8 million, led by the iShares Ethereum Trust at $47.1 million, according to Farside Investors.
VanEck and Fidelity's Ether products also brought in $16.6 million and $16.2 million, respectively.
In the year On August 5, sentiment fell as Bitcoin and Ether (ETH) rose 10% and 18% in a short two-hour window.
More than $600 million in leveraged long positions were wiped out, with many altcoins hit harder than Bitcoin and Ether.
Trillions of dollars were also lost from the US stock market on August 5th.
The market's rout was led by weak employment data, subdued growth among major technology stocks and fears of a recession.
Independent trader Bob Lucas describes the past three days in a 7-to-10-year event that saw more than $500 billion wiped from the crypto market capitalization.
Related: Crypto market crash triggered by ‘brutal' selling in jump trading: report
One Bitcoin analyst, Tur Demeister, believes Bitcoin could fall to $40,000 to $45,000 – although he cautions against betting.
“You wouldn't take a bearish bet in a bitcoin bull market because in the short term, prices could pull back.”
Bitcoin partially recovered 11.85% to $55,680.
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