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Bitcoin Volatility Deepens as Fear and Greed Index Signals Extreme Fear

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Cryptocurrency Bitcoin faces sharp declines, with BTC-USD sliding amid fears of a crypto crash and investor sentiment turning cautious.

The cryptocurrency market is once again in turmoil, with Bitcoin (BTC) leading a sharp downturn that has rattled investors worldwide. As headlines ask “why is crypto crashing?” the Fear and Greed Index has plunged to levels not seen since the pandemic-era meltdown, underscoring the depth of anxiety across the sector. With BTC price USD slipping below key support levels, traders are questioning whether this marks a temporary correction or the start of a deeper bear cycle.

Fear and Greed Index Analysis

The Fear and Greed Index, a widely followed sentiment gauge, has dropped to 10 — extreme fear. This collapse reflects widespread panic selling, fueled by macroeconomic uncertainty, hawkish Federal Reserve signals, and rising Treasury yields. Historically, such extreme readings have coincided with heightened volatility and, in some cases, buying opportunities for long-term holders. Yet, for many retail investors, the index’s plunge is a stark reminder of crypto’s inherent risks.

Bitcoin Price Movements (BTC USD)

In recent sessions, BTC USD has fallen sharply, dipping below $86,000 before attempting to stabilize near $91,000–$96,000. The sell-off wiped out nearly $0.19 trillion in market value within 24 hours, with altcoins like Ethereum and Solana also suffering steep losses. Liquidations across leveraged positions exceeded $1 billion, amplifying the downward spiral.

Why Is Crypto Crashing?

Several factors explain why crypto is crashing:

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  • Macroeconomic pressures: Rising bond yields and Fed tightening have reduced appetite for risk assets.
  • Regulatory uncertainty: Ongoing debates around crypto oversight in major markets have unsettled investors.
  • Market structure: Heavy leverage and speculative trading magnify downturns, leading to cascading liquidations.
  • Broader sentiment: With the stock market today also under pressure, correlations between equities and crypto have intensified, dragging digital assets lower.
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Expert and Market Commentary

Analysts note that while short-term sentiment is bleak, long-term accumulation continues. Institutional players are quietly buying dips, betting on Bitcoin’s resilience as a store of value. However, retail investors remain cautious, with bitcoin news dominated by headlines about collapsing portfolios and vanishing trillions in market capitalisation.

Broader Market Context

The crypto crash has unfolded alongside turbulence in global equities. The stock market today reflects similar risk-off behaviour, with investors shifting toward safe-haven assets. This correlation highlights how the cryptocurrency bitcoin is increasingly tied to broader financial conditions, challenging the narrative of Bitcoin as a purely independent hedge.

Outlook: Bitcoin’s Path Ahead

Despite the current downturn, history suggests that extreme fear often precedes recovery. If BTC price USD can stabilise above key support levels, confidence may return. Yet, persistent macro headwinds mean volatility will remain elevated. For now, the Fear and Greed Index serves as both a warning and a potential contrarian signal: while many ask “why is bitcoin dropping?”, seasoned investors see opportunity in crisis.

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🌐 The Global Blockchain Show 2025 Is Coming to Abu Dhabi – December 10–11, 2025

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The blockchain world is converging in Abu Dhabi this December for one of the most anticipated Web3 events of the year: the Global Blockchain Show 2025, taking place December 10–11, 2025. With over 7,000+ attendees, 250+ global speakers, and 350+ pioneering companies, this summit promises to be a powerhouse of innovation, networking, and strategic insight globalblockchainshow.com Cointelegraph.

🚀 A Premier Web3 & Crypto Conference

Organized by VAP Group and powered by Times of Blockchain, the Global Blockchain Show is more than just a conference—it’s a launchpad for the future of decentralized technology. Held at a world-class venue in Abu Dhabi, the event will spotlight the UAE’s bold leap into blockchain adoption across government, enterprise, and finance Cointelegraph.

🔍 What to Expect

1. Global Thought Leadership

Hear from 250+ blockchain pioneers, founders, and policy shapers driving the next wave of innovation. Topics will span:

  • Web3 infrastructure
  • Tokenization and DeFi
  • Blockchain regulation and compliance
  • Enterprise integration and smart contracts

2. Elite Networking

Rub shoulders with:

  • Top-tier investors
  • Tech giants
  • Startups and developers
  • Government officials and regulators

This is your chance to forge partnerships that could shape the next decade of blockchain evolution.

3. Immersive Exhibitions

Explore cutting-edge solutions from 350+ companies showcasing the latest in crypto, NFTs, metaverse, and enterprise blockchain applications.

🌍 Why Abu Dhabi?

Abu Dhabi is rapidly emerging as a global blockchain hub, with progressive regulation, strong institutional support, and a thriving tech ecosystem. The city’s commitment to digital transformation makes it the perfect host for a summit of this scale and ambition.

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🎯 Who Should Attend?

This event is ideal for:

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  • Blockchain founders and developers
  • Crypto investors and analysts
  • Web3 startups and entrepreneurs
  • Government and enterprise leaders
  • Legal and compliance professionals

Whether you’re building the next unicorn or shaping policy, the Global Blockchain Show offers unparalleled access to insights, capital, and community.

📅 Save the Date

Global Blockchain Show 2025
🗓️ Dates: December 10–11, 2025
📍 Location: Abu Dhabi, UAE

Ready to be part of the future?
Visit the official website to register, explore the agenda, and secure your spot among the world’s top blockchain minds globalblockchainshow.com.

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Rising from the Desert: How the UAE is Shaping the Future of Crypto

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Cryptocurrency on Mobile App

The sun-drenched sands of the United Arab Emirates are no longer solely synonymous with oil wealth and towering skyscrapers. In recent years, the UAE has emerged as a frontrunner in the global race to embrace and regulate the burgeoning world of cryptocurrencies and digital assets. With the MENA region accounting for 7.2% of global crypto transaction volumes, equating to nearly $400 billion, the UAE is at the forefront of establishing the standards that will define the future of this revolutionary technology.

From Skepticism to Embrace: A Rapidly Evolving Landscape

Just a few years ago, the UAE’s stance on cryptocurrencies was cautious, mirroring the general global uncertainty surrounding the nascent asset class. However, a forward-thinking vision and a keen understanding of the potential of this digital revolution led to a dramatic shift in approach. In 2022, Dubai established the Virtual Asset Regulatory Authority (VARA), the world’s first dedicated regulator for virtual assets. This decisive step sent a clear message: the UAE intended to not only embrace crypto but also become a global leader in shaping its development.

Building a Robust Regulatory Framework: The Cornerstone of Success

VARA’s establishment marked a turning point. Unlike many other jurisdictions grappling with a patchwork of regulations or outright bans, the UAE took a proactive approach. VARA’s comprehensive rulebook outlined clear guidelines for operating within the crypto space, addressing concerns about money laundering, market manipulation, and consumer protection. This transparent and well-defined regulatory framework instilled confidence in both investors and established financial institutions, paving the way for the UAE’s crypto ecosystem to flourish.

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A Magnet for Innovation: Fostering a Thriving Crypto Hub

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The UAE’s commitment to creating a welcoming environment for crypto businesses has attracted a diverse range of players to its shores. From established financial giants like Binance and FTX to innovative startups developing the next generation of blockchain solutions, the Dubai International Financial Centre (DIFC) and other free zones have become vibrant hubs for crypto activity. This influx of talent and expertise has fostered a collaborative and dynamic ecosystem, where innovation thrives and new ideas rapidly take shape.

Beyond Regulation: Education and Infrastructure for Sustainable Growth

The UAE’s vision extends beyond simply providing a regulatory framework. Recognizing the importance of building a knowledgeable and engaged crypto community, the government has launched numerous initiatives to educate the public about digital assets. Universities are offering specialized courses in blockchain technology, while government-backed hackathons and conferences connect entrepreneurs and investors, further fueling the ecosystem’s growth.

Challenges and Opportunities: Navigating the Uncharted Waters

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Despite its remarkable progress, the UAE’s crypto journey is still unfolding. Issues like market volatility, the potential for cybercrime, and the need for global regulatory coordination remain challenges that need to be addressed. Nevertheless, the UAE’s proactive approach and willingness to adapt position it well to overcome these hurdles. By continuously refining its regulatory framework, fostering innovation, and collaborating with international partners, the UAE can solidify its position as the preeminent global hub for responsible and sustainable crypto development.

The Ripple Effect: Shaping the Future of Global Crypto Standards

The UAE’s pioneering efforts are not confined within its borders. Its clear regulatory framework and commitment to best practices are serving as a model for other nations seeking to navigate the uncharted waters of crypto regulation. As more countries consider establishing their regulatory frameworks, the UAE’s experience and expertise are likely to be closely studied and emulated. In this way, the UAE’s leadership role in shaping the future of crypto extends far beyond its geographical boundaries, influencing the development of global standards that will impact the industry for years to come.

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Conclusion: A Beacon of Innovation in the Crypto Landscape

The UAE’s rapid rise to prominence in the world of cryptocurrencies is a testament to its forward-thinking vision and unwavering commitment to innovation. By establishing a robust regulatory framework, fostering a thriving crypto ecosystem, and actively promoting education and collaboration, the UAE has positioned itself as a leader in shaping the future of this transformative technology. As the global crypto landscape continues to evolve, the UAE’s unwavering ambition and unwavering commitment to responsible development promise to make its mark on the future of finance and reshape the way we interact with the digital world.

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The Dark Side of Bitcoin ETFs: Why They Could Be the Next Big Threat to the Cryptocurrency Market

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Introduction

Bitcoin exchange-traded funds (ETFs) have been a hot topic in the investment world for the last few years. The idea of having a regulated investment product that tracks the price of Bitcoin, without the need to hold the cryptocurrency directly, has been appealing to many investors. However, there are also concerns and criticisms surrounding Bitcoin ETFs. Some argue that such funds could lead to market manipulation and volatility. Others question the security of such funds and the lack of transparency in the underlying assets. Despite the potential benefits, the debate around Bitcoin ETFs continues, and investors should carefully consider the pros and cons before investing in them.

Changing the Nature of Bitcoin

One of the main criticisms of Bitcoin ETFs is that they could change the nature of Bitcoin itself. Satoshi Nakamoto, the creator of Bitcoin, envisioned it as a decentralized, peer-to-peer electronic cash system. However, if Bitcoin ETFs are approved, they would introduce a centralized financial product into the market. This could compromise the freedom and security supposedly offered by Bitcoin’s decentralization.

Market Manipulation

The possibility of Bitcoin ETFs being used to manipulate the market is a concern that has been raised by the Securities and Exchange Commission (SEC) due to the potential for market manipulation in the cryptocurrency space. Although the approval of Bitcoin ETFs would bring a new level of legitimacy to the cryptocurrency market, it could also make it vulnerable to market manipulation. This could potentially hurt the entire cryptocurrency market, as investors may lose confidence in the digital currency space. As such, it is important for regulators to thoroughly consider and evaluate the potential risks before approving any Bitcoin ETFs.

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Bubble in the Cryptocurrency Market

Furthermore, some analysts believe that Bitcoin ETFs could lead to a bubble in the cryptocurrency market. If investors pour large amounts of money into Bitcoin ETFs, it could drive up the price of Bitcoin to unsustainable levels. This could lead to a crash in the market, similar to the dot-com bubble of the late 1990s.

Arguments in Favor of Bitcoin ETFs

Despite these concerns, there are also arguments in favour of Bitcoin ETFs. For example, they could make it easier for institutional investors to gain exposure to the cryptocurrency market. This could lead to increased liquidity and stability in the market.

Conclusion

As the debate around Bitcoin ETFs continues, many are weighing the potential benefits against the risks and criticisms. While such ETFs could bring more investors into the cryptocurrency market and increase liquidity, they also raise concerns about security, volatility, and the potential for market manipulation. Additionally, regulators are still grappling with how to regulate cryptocurrencies and ETFs, which adds uncertainty to the approval process. If approved, Bitcoin ETFs could have a significant impact on the market, but it remains to be seen how they will be received and whether they will meet the necessary regulatory requirements. Ultimately, investors will need to carefully evaluate the risks and potential rewards before making any decisions.

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FAQs

What is a Bitcoin ETF? 

A Bitcoin ETF is an exchange-traded fund that tracks the price of Bitcoin. It allows investors to gain exposure to the cryptocurrency market without having to purchase and store actual bitcoins.

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What are the criticisms of Bitcoin ETFs? 

One of the main criticisms of Bitcoin ETFs is that they could change the nature of Bitcoin itself. Another concern is that Bitcoin ETFs could be used to manipulate the market. Furthermore, some analysts believe that Bitcoin ETFs could lead to a bubble in the cryptocurrency market.

What are the arguments in favour of Bitcoin ETFs?

 They could make it easier for institutional investors to gain exposure to the cryptocurrency market, which could lead to increased liquidity and stability in the market 1.

When will Bitcoin ETFs be approved?

It remains to be seen whether they will be approved by regulators and how they will impact the market if they are.

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What is the difference between a Bitcoin ETF and a Bitcoin futures ETF? 

A Bitcoin ETF lets traders easily gain exposure to the biggest cryptocurrency via traditional brokerage accounts and stock markets, without needing to directly buy or sell the digital asset on a crypto exchange. Bitcoin futures ETFs, on the other hand, hold derivatives contracts whose value is tied to Bitcoin.

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