September was the sixth month since the cryptocurrency market plunged into fear, according to the Fear and Greed Index. This is the longest period in which the market has been in a state of fear since the introduction of the index.
As of September 11, the market fixed at the level of 26 bp, which is equivalent to “moderate fear”.
The market reached its lowest point on June 19, when the index collapsed to 6 bp, which is equivalent to “extreme fear”. Then bitcoin (BTC) was trading in the BTC/USD pair at ~$23,000, and ether (ETH) in the ETH/USD pair at $1,520.
Since the beginning of the summer, Bitcoin has continued to remain below the $25,000 level, which may signal investor uncertainty that the leading cryptocurrency by capitalization will not continue to update annual lows.
In addition, the dominance of bitcoin in the market is declining. By data BTCTools, the Bitcoin dominance index dropped to 37.6 bp, which is the lowest since the summer of 2018. Ether was able to increase its dominance from 17bp. in early June to 20.4 b.p. in September.
Confidence in bitcoin is declining among public miners as well. How calculated at Arcane Research, Marathon, Hut 8 and Bitfarms have unloaded the most since April. Miners Riot and CleanSpark were the only ones who, on the contrary, increased reserves in bitcoin from April to September.
Here, however, it is important to take into account the fact that many large miners found themselves in a difficult financial situation due to the fall in bitcoin quotes. As Ethan Vera, co-founder of mining firm Luxor Technologies, has previously argued, many lenders (Bable Finance, Galaxy Digital, the bankrupt Celsius Network, BlockFi, Foundry Networks) are worried that they have issued too many loans secured by mining devices. According to Vera’s calculations, in total, firms issued loans for $4 billion.
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