Blood In The Streets: Crypto Market Becomes Fearful As Bitcoin Dives

Making its way up to the higher levels of its current range, Bitcoin records a 5.6% profit in 24 hours. BTC’s price took a heavy loss, as the implementation of its legal tender status in El Salvador became a “buy the rumor, sell the news” event. At the time of writing, the first cryptocurrency by market cap trades at $46,529 with an 11.8% loss in the 7-day chart. Previous to this event, Bitcoin made a quick move to the $52,000 zone. This moved the Fear & Greed Index back to the green area, as the general sentiment in the market turned bullish. Related Reading | TA: Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $46K According to a recent Arcane Research report, the Index has flipped red, back to fear levels once again. Bitcoin has experienced a week of volatility, mostly to the upside, but the violent bearish price action has made investors fearful, as seen below. Arcane Research found that most of the action is taking place in the derivatives sector. The BTC Spot to Futures Volume indicates a decline in the trading volume for the spot market. This doesn’t necessarily suggest a rise in the trading volume for futures, but a steady dropped in spot trading over a period of 5 months, as derivatives trading volume remains stable. As NewsBTC reported, much of the recent price action and volatility is related to an increase in over-leverage positions for futures. This correlates with periods of bearish mom...