Investors find themselves in an area of ”extreme fear” as bitcoin hits new unemployment reports
The Bitcoin Fear and Greed Index, invented by the team at the Alternative.me portal, shows that today, September 3, the cryptocurrency market feels “extremely fearful”. The index shows 21.
By September 1, the index had moved between 30 and slightly above 20.
Bitcoin pushed into “extreme fear” territory
On Friday, August 2, the leading digital currency fell from a level of $20,000 that it had managed to hold for a while and declined slightly, hitting the $19,800 area. It took several attempts to get back $20,000 but bitcoin failed to settle on that price line.
Earlier, regular jobs reports came out alongside US unemployment data. The figures in this proved to be higher than expected – 3.7 percent versus 3.5%, which hit the stock market and with it the cryptocurrency.
However, non-farm payrolls showed an additional 317,000 payrolls compared to the expected 350,000. This indicates that the Fed Reserve will hardly pivot from its current bullish strategy.
Fed Chairman Jerome Powell, in his speech to bankers on August 26, campaigned for the continuation of the US central bank’s aggressive policy. On that day, bitcoin started its current decline and fell below the $21,000+ level.
Although the above index shows undervalued, the website’s team cautioned that times of “extreme fear” on the market could present a good buying opportunity for the asset.
Bitcoin Fear and Greed Index is 21 – Extreme Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) 3 September 2022
Current Price: $19,991 pic.twitter.com/3BjxqhnPCn
Will Bitcoin Push To $15,000?
As previously covered by U.Today, Max Gokhman, chief investment officer at AlphaTrAI Fund, believes that the unemployment report on tough jobs could lead to a deep downtrend for bitcoin and a drop to $15,000 for BTC.
He also noted that stronger-than-expected data in the jobs report could indicate that the Fed will continue its tight monetary policy, which is likely to push bitcoin down the price ladder.
Peter Schiff’s survey predicts deep decline
About a week ago, economist and fund manager Peter Schiff, an outspoken critic of bitcoin, launched a pail on his Twitter page asking his army of followers if they expected bitcoin to recover above $20,000.
However, he put it in the form of two questions – if bitcoin will soon eliminate buyers or will it run out of sellers. Most voices believed that BTC would run out of buyers. Therefore, Schiff used this result to support his bearish expectation that the major cryptocurrency will continue to decline.
Earlier this year, he tweeted that BTC might test support below the $10,000 level.