Crypto Sentiment Shifts To Neutral Following Bitcoin ETF Hype As $116M In Liquidations Hit Traders

The Crypto Fear and Greed Index, a measure of market sentiment, indicates that enthusiasm in the Bitcoin BTC/USD market has receded to “neutral” for the first time since October 2023, following the authorization of spot Bitcoin Exchange-Traded Funds (ETFs) in the United States.

What Happened: As per the latest figures, the index places Bitcoin’s sentiment at a score of 52 out of 100, which means ‘neutral. This comes just days after the index briefly soared to an “extreme greed” rating of 76 amidst anticipation for the approved spot Bitcoin ETFs.

The Index compiles and analyzes inputs from six distinct market performance metrics daily to gauge the mood of the market: volatility represents 25%, market momentum and volume another 25%, social media buzz accounts for 15%, surveys comprise 15%, while Bitcoin’s market dominance and Google trends each contribute 10%.

Data from Coinglass reveal that within the last 24 hours, there have been 50,359 trader liquidations, accumulating to $116.62 million in total. The largest of these liquidations occurred on the OKX platform, with an ETH-USD-SWAP valued at $3.91 million.

A significant sum of cryptocurrency long positions, valued at $82.69 million, were liquidated during the last day alone. Of these, Bitcoin long positions bore a loss of $19 million, while Ethereum ETH/USD positions exceeded losses of $20 million.

See More: Dogecoin HODLERs Are Beating Shiba Inu With 57% Landing In Profits, IntoTheBlock Data Reveals

Why It Matters: The Bitcoin spike to $49,000 immediately after the SEC’s nod wilted by January 12, with the cryptocurrency retreating to as low as $41,500 as investors seized the chance to secure profits.

Price Action: At the time of writing, BTC was trading at $42,544 down 0.41% in the last 24 hours, according to Benzinga Pro.

Photo by Igor Faun on Shutterstock

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