Bearish wave hits crypto as Bitcoin and Ethereum faced sharp declines over past week

Crypto traders are turning bearish aft Bitcoin and Ethereum struggled to support caller gains, according to respective on-chain metrics.

According to CryptoSlate data, Bitcoin has fallen astir 7% implicit the past week, trading astatine $113,479 arsenic of property time. Ethereum has experienced an adjacent sharper drop, losing 10% successful the aforesaid clip frim and hovering astir $4,269.

The diminution is not constricted to the 2 astir important integer assets. Other apical 10 cryptocurrencies by marketplace capitalization, including Solana, XRP, Dogecoin, and Cardano, person besides posted double-digit losses implicit the past 7 days.

The abrupt reversal marks a stark alteration from the bullish optimism that dominated capitalist sentiment conscionable weeks ago. According to Coinperps data, this has resulted successful the Crypto Fear & Greed Index dropping to 52, its lowest level since June.

Additional Aug. 20 information from Santiment corroborates the flaccid marketplace sentiment. The steadfast pointed retired that societal media sentiments astir Bitcoin had reached their lowest levels since June 22, erstwhile geopolitical tensions triggered panic selling.

It added:

“Retail traders person done a implicit 180 aft Bitcoin has failed to rally and dipped beneath $113,000.”

Bitcoin Market Sentiment (Source: Santiment)

Meanwhile, the bearish temper appears to person influenced trading behavior.

CoinGlass data shows that much than 50% of Bitcoin positions are presently short, signaling that astir traders expect further terms declines. Meanwhile, 48% of traders person maintained progressive agelong positions implicit the past day.

In fact, crypto bettors connected prediction platforms similar Polymarket progressively assign a 60% probability that Bitcoin could autumn to $111,000 oregon lower.

Crypto probe level Kronos argued that the marketplace jitters stemmed from concerns implicit the Federal Reserve’s imaginable complaint chopped successful September.

According to the firm:

“Powell’s Jackson Hole code remains the cardinal imaginable pivot [for the crypto market]: dovish connection whitethorn spark a rebound, hawkish tones could trigger deeper corrections.”

Notably, the complaint markets awesome a beardown accidental of easing, with the CME FedWatch data showing the probability astatine 81%.

The station Bearish question hits crypto arsenic Bitcoin and Ethereum faced crisp declines implicit past week appeared archetypal connected CryptoSlate.