Key facts
- Bitcoin's price fell below $67,000, an 11% decrease over the past week.
- The Bitcoin Fear & Greed Index dropped to 11, indicating extreme fear.
- This is the lowest the Fear & Greed Index has been since early April.
- The price correction is linked to contracting demand for Bitcoin.
- Demand has contracted by 232,000 BTC over the past month.
Bitcoin has experienced a significant price drop, trading around $67,000, which represents an 11% decrease over the past week. This downturn has coincided with a sharp decline in market sentiment, as indicated by the Bitcoin Fear & Greed Index falling to a value of 11. This level signifies extreme fear among investors and is the lowest the index has been since early April. The index, which ranges from zero to 100, uses values below 25 to denote extreme fear and above 53 for greed. Julio Moreno, Head of Research at CryptoQuant, noted that the current price correction is directly related to contracting Bitcoin demand, which has decreased by 232,000 BTC over the past month, and is not influenced by external factors like stock market performance or macroeconomics. Historically, extreme fear in the market has sometimes preceded price recoveries.