On August 5, the cryptocurrency fear and greed index fell to 17 out of 100, the lowest level since July 2022. This occurred amid an outflow of $168.4 million from Bitcoin spot ETFs, with Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF experiencing the largest losses.
At the same time, Ethereum spot ETFs saw an inflow of $48.8 million, led by iShares Ethereum Trust. However, the 10% and 18% drops in Bitcoin and Ethereum over a short period led to the liquidation of more than $600 million in leveraged long positions and significant losses in the US stock market.
Traders and analysts are warning of potential further fluctuations. Independent trader Bob Lucas described the recent events as a rare occurrence, while analyst Tuur Demeester believes that Bitcoin may bottom out between $40,000 and $45,000 but warns against bearish bets in a bullish market.
