Surprise Bitcoin Selloff Causes Extreme Greed To Taper

Blood has been shed as Bitcoin dropped below $60,000 once again and hints at more downside. The first crypto by market cap trades at $60,800, as of press time, with a 5% loss in the daily chart. Although it has seemed some recovery, Bitcoin registers a correction of around 12% from its all-time high as an increase in selling pressure caused the entire crypto market to take a dive. Related Reading | Bitcoin Bears Are Back, Why BTC Could Even Dive Below $60K The general sentiment in the market has flipped from extreme greed to normal greed levels, according to data from Arcane Research. Despite the correction, traders and operators remain optimistic about potential new highs. This metric could continue to fall as Bitcoin moves at the low of a range between $58,000 to around $70,000 and the market reset. The derivatives sector is likely to be the most affected. As NewsBTC reported, Bitcoin futures contracts across the board got overheated as BTC’s price pushed into uncharted territory. This created a lot of liquidity at the lows and a rise in funding rates. In other words, a lot of traders took over-leveraged long positions expecting more upside, but large investors drove the price below $59,000 to take advantage of the liquidity and fill their orders. Post-crash, funding rates have returned to neutral territory in almost every crypto exchange platform. Along with the market sentiment provided by Arcane Research, and the fac...