Bitcoin price dropped to $91,380, prompting a significant 19-point decline in the Crypto Fear and Greed Index to 50.
Amid continuous selling pressure, Bitcoin price BTC $94 809 24h volatility: 1.6% Market cap: $1.88 T Vol. 24h: $61.99 B has corrected further hitting a low of $91,380 levels earlier today. As a result, the Crypto Fear and Greed Index, which measures the overall market sentiment, dropped by a massive 19 points in a day swinging towards the fear end, thereby hitting its lowest level since October 14.
The index’s sharp drop to a score of 50 out of 100 marks one of its most significant daily declines in recent years. Thus, the market sentiment has slipped into the “Neutral” zone after three months of lingering in the “Extreme Greed” and “Greed” zones.
Source: Alternative.me
The Crypto Fear and Greed Index touched a high of 94 out of 100 on November 22, amid strong market optimism following Republican Donald Trump‘s presidential election victory. furthermore, there’s strong speculation of a potential US Bitcoin reserve strategy in 2025
The selling pressure on Bitcoin continues as reports suggested that the US government sold over 69,000 Bitcoins worth $6.7 billion. However, some market analysts believe that macro headwinds will continue to play a role in the BTC price volatility moving ahead.
Analysts point to expectations of tighter monetary policy from the US Federal Reserve in 2025 as a key factor behind the decline. Additionally, rising Treasury yields and a strengthening US dollar have contributed to Bitcoin remaining largely below the $100,000 mark in recent weeks.
Later today on Friday, the Bureau of Labor Statistics (BLS) will release the Nonfarm Payrolls (NFP) data of the United States for the last month of December 2024. Investors are closely monitoring the December jobs report for new insights into the state of the US labor market, amid ongoing concerns about inflation and the monetary policy trajectory under Trump’s presidency.
Despite the current turbulence in the crypto market, veteran Wall Street investor and macro analyst Raoul Pal remains optimistic for Bitcoin and the overall altcoin space moving ahead.
Real Vision co-founder and CEO Raoul Pal stated that the crypto market has entered the “Banana Zone” signaling the phase of a strong rally. Pal predicts this could lead to a “Banana Singularity,” a period characterized by widespread market surges where “everything goes up.”
Yes, we are still in the Banana Zone… 🍌🍌🍌
Banana Zone Phase 1 was the break out last year, now the consolidation (like the 2016/17 consolidation after phase 1). This won't last long..
Next up Banana Zone Phase 2 – The "Banana Singularity" (Alts szn) when everything goes up…
— Raoul Pal (@RaoulGMI) January 10, 2025
The macro investor added that the first phase of the bull market started with a breakout in November 2024 after Donald Trump’s election victory. This was later followed by the current phase of consolidation similar to that witnessed in 2016/17. Below are the three Banana Zones predicted by Raoul Pal explaining why the Bitcoin price and the overall crypto market will go up.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
