A crypto market sale has extended to its second week while Bitcoin (BTC) prices took place at almost $ 80,000 late Sunday, triggering a new drop in tokens and major altcoins.
DOGECOIN (DOGE) and ADA de Cardano have led losses with a crisis of almost 10% in the last 24 hours, according to data, the XRP falling by more than 7%. BNB, Ether (ETH) of the BNB channel, TRX) fell by 5%, while BTC lost 4%.
This sent the index of fear and crypto green well followed to a low reading of 17 years – which indicates an “extreme fear” – at its lowest level since mid -2023.
The index measures investors’ emotions and varies from 0 (lowest feeling) to 100 (highest feeling), helping to identify if investors are too afraid (potential buying opportunity) or too greedy (possible market correction).
It is based on price volatility, momentum, feeling of social media, Google Trends data and the overall Bitcoin market share. It tends to act as a short -term indicator.
The main tokens have fully produced all the gains made after President Donald Trump announced a strategic crypto reserve in the United States earlier this month, sending XRP, Solana de Solana and Ada tokens up to 60% in the following days.
The merchants expected plans to ban pressure on pressure in the United States for the majors, but the hopes were sprayed while Trump reused assets previously seized in BTC as a reserve and said that the non-BTC seized assets would be considered a “ storage ” of tokens.
Then, a planned summit of the cryptography of the White House on March 7 ended with a “nothing greedy” without the audacious announcements expected. The summit led to a framework for stable legislation in August and a lighter regulatory promise, but these results did not stimulate the market as expected.
The losses have been amplified while the world markets took a hit in the middle of an ongoing pricing war launched by Trump and other world leaders. A widely followed dollar index (DYX), a measure of the strength of the US dollar, has been at the lowest since November, less than 105 (an index of 100 is considered strong, which tends to exert pressure on risk assets).
Merchants are now in the way and look at the approach of the coming months, mainly looking at macroeconomic data and decisions concerning the additional positioning.
“The summit reported more optimism,” said Kevin Guo, director of Hashkey Research, in Coindesk in a telegram message. “Despite the expectations for more substantial announcements, as cryptographic assets continue to follow American actions in a negative trend in the wake of the February employment report which experienced generally stable results despite the government’s job cuts.
“Investors do not expect the reversal of the trend while the president of the federal reserve, Jerome Powell, assured that the Fed will continue to be patience on a bumpy road to a inflation rate of 2%, which has further reduced the expectations of a drop in the rate this year,” added Guo.
Traders bought short -term treasury bills, according to Bloomberg, expecting the federal reserve to regain the reduction in interest rates as soon as possible to prevent the economy from deteriorating – a sign of hope for cryptographic bulls and the lower rates tend to create entry into more risky assets.
