Bitcoin Fear & Greed Index Drops to 'Extreme Fear' as BTC Price Briefly Dips Below $56K

Bitcoin could plunge as low as $50,000 this weekend, says BitMEX co-founder Arthur Hayes, with the cryptocurrency possibly declining by another 12%.

Bitcoin’s price decline has brought the market to the “fear” level, with the cryptocurrency’s price briefly dropping below $56,000.

According to BitMEX co-founder Arthur Hayes, Bitcoin could plunge as low as $50,000 this weekend, with the cryptocurrency potentially declining by another 12%.

The Crypto Fear & Greed Index, which measures market sentiment on a scale of 0 to 100, dropped to 22 on September 6, indicating a state of “extreme fear.” This is the lowest level since August 8, when the index hit 20. It’s the first time the index has entered the “extreme fear” zone since August 12.

Bitcoin’s price has fallen by 2.7% in the past 24 hours, reaching a low of $55,838 before recovering slightly to $56,585. This decline wiped $29.7 billion from Bitcoin’s market cap, according to CoinMarketCap data.

Arthur Hayes shared his bearish outlook on X, stating, “$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.” His prediction comes amid growing concerns about a slowing U.S. economy and disappointing jobs data, which have dampened market market sentiment.

Other major cryptocurrencies also faced declines, with Ether down 2.23%, Solana falling 2.82%, and XRP decreasing by 2.19%. This market downturn resulted in $94.26 million in liquidations, including $36.71 million in Bitcoin longs and $17.36 million in Ethereum longs.

Bitcoin’s recent price drop has pushed market sentiment to extreme fear, with predictions of a possible plunge to $50,000 this weekend. The severe dip in sentiment reflects growing uncertainty and pessimism among investors.

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