$61 million bitcoin whale liquidated as sentiment hits 'extreme fear'
According to CoinDesk analytics, the largest single forced closure of a position by a large bitcoin investor (a so-called 'whale') in the last 24 hours occurred on the HTX cryptocurrency exchange, amounting to around $61 million.
This event coincided with a drop in the price of bitcoin after gains over the weekend, as well as the return of the Fear & Greed Index to historic lows, indicating 'extreme fear' in the cryptocurrency market.
The Fear & Greed Index is an indicator that reflects the sentiment of investors in the cryptocurrency market. It fluctuates in the range from 0 ('extreme fear') to 100 ('extreme greed'). The current value of the index is only 11 out of 100, indicating a high level of pessimism among market participants.
Such a situation in the market, when large players suffer huge losses and the fear index is in the 'extreme fear' zone, is often observed before a trend reversal. This may be a signal that the market has reached a local bottom and a recovery may begin in the near future.
However, experts warn that the situation in the cryptocurrency market remains extremely volatile and urge investors to be cautious and not make rash decisions.