After the release of US unemployment data, danger bells began to ring for Bitcoin. BTC price dropped yesterday, influenced by new economic data. As a result, investor sentiment has returned to “extreme fear” territory months later. The latest Bitcoin Fear and Greed Index data shows that on September 3, the cryptocurrency market is feeling “extreme fear”. The index shows 21. Until September 1, this index was between 30 and just over 20.
Bitcoin enters “extreme fear” territory
On Friday, August 2, the leading digital currency fell from the $20,000 level it has managed to hold for a while. Thus, it reached its $19,800 area. He made several attempts to recover $20,000. However, Bitcoin failed to stabilize at this price line. Prior to that, the regular employment report came out along with the US unemployment data. The numbers inside were higher than expected. The 3.7% data came against the 3.5% expectations of the markets. This hit the stock market and with it cryptocurrencies.
However, new data shows that the Fed will not be making much of a turn from its current hawk strategy. As we have reported as Kriptokoin.com, FED Chairman Jerome Powell made a speech to bankers on August 26. Accordingly, he announced that the hawkish policy of the US central bank would continue. On that day, Bitcoin started its current decline and dropped below the $21,000 level. Now, the fear index shows a low value. But experts say “extreme fear” can trigger a buying move.
Bitcoin Fear and Greed Index is 21 – Extreme Fear
Current price: $19,991 pic.twitter.com/3BjxqhnPCn— Bitcoin Fear and Greed Index (@BitcoinFear) September 3, 2022
“BTC risks falling to $15,000”
Max Gokhman, chief investment officer of the AlphaTraI fund, said the unemployment report could lead to a deeper Bitcoin decline. The data came in line with Gokhman’s decline thesis. If his theory is correct, BTC will soon visit the $15,000 level.
“A deeper fall is coming”
About a week ago, famous Bitcoin critic Peter Schiff asked his followers on his Twitter page if they expect Bitcoin to recover above $20,000. However, he put this in the form of two questions: Will Bitcoin buyers finish sooner or will sellers run out? Most of the voices out there were betting that the buyers of BTC would run out. Earlier this year, Schiff tweeted that BTC is likely to test support below the $10,000 level.
“Wait for this development for Bitcoin crash”
Kyle McDonald, an independent researcher, advises his followers to sell Bitcoin. The expert has a different point of view than other analysts. According to him, the Merge upgrade of the Ethereum network, which is expected to be completed on September 15, could lead to a collapse in BTC. McDonald says that Ether’s transition to PoS will trigger a correction in PoS networks like BTC.
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