Bitcoin (BTC) Price Plummets, Raising Fear of Further Bear Dominance

• There is “Extreme Fear” on the Crypto Fear and Greed Index.
• BTC might fall to levels not seen since late 2020.

With Bitcoin falling to a low of $33,393.61, things only worsened the cryptocurrency. This year’s lowest level for Bitcoin (BTC) has sparked worries that the digital currency will challenge support near $30,000.

There is “Extreme Fear” on the Crypto Fear and Greed Index, which measures investor sentiment. The value of BTC has fallen by 51% from its all-time high of $68,789.63, recorded on November 10, 2021. In the last 24 hours, Bitcoin’s price has fallen by 3.25 percent, bringing its seven-day decline to 14 percent. The scenario is the same for smaller-cap cryptocurrencies, with the majority of them trading in the red.

High Correlation to Stock Market

The recent decline in Bitcoin’s value is reminiscent of the devastation in July of last year when its value temporarily fell below $30,000. Because of their high association with the stock market, the crypto markets are particularly susceptible at the moment.

In today’s volatile trading environment, traders are dealing with a wide range of issues ranging from skyrocketing oil costs to the Russian invasion of Ukraine to rising inflation and new COVID lockdowns in China. BTC might fall to levels not seen since late 2020, when the Bull Run began to gather speed if Wall Street continues to decline. When this article was written, S&P 500 futures and Dow Jones futures were down and trading in the red.

The UST stablecoin’s loss of its peg to the US dollar compounded the instability in the crypto markets over the weekend. Bitcoin has plummeted constantly over the last few days, and there are worries that the correction may continue to worsen.