Data shows the Bitcoin Fear & Greed Index has seen a bearish flip following the plunge in the cryptocurrency’s price to $113,000.

Bitcoin Has Continued Its Recent Drawdown

Since setting a new all-time high (ATH) above $124,000 one week ago, Bitcoin has been facing a downtrend. The bearish momentum has only furthered during the past day, with BTC hitting a low under $113,000.

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Below is a chart that shows how the coin’s recent performance has looked.

From the graph, it’s visible that BTC has seen a bit of recovery after forming a low around $112,400, but at the current price of $113,800, the asset is still notably below the levels from the last few days.

As is usually the case, the bearish price action has worsened the sentiment among investors.

Fear & Greed Index Is Now Suggesting A Fearful Market

The “Fear & Greed Index” refers to an indicator created by Alternative that tells us about the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets.

The index determines the investor mentality using the data of five factors: trading volume, market cap dominance, volatility, social media sentiment, and Google Trends. It then represents it as a score lying between zero and hundred.

When the metric has a value greater than 53, it means the investors as a whole share a sentiment of greed. On the other hand, it being under 47 implies the presence of fear in the market. A level lying between the two thresholds naturally corresponds to a net neutral mentality.

Now, here is how the sentiment in the sector currently looks according to the Fear & Greed Index:

As displayed above, the index is sitting at a value of 44, indicating that Bitcoin investors are fearful. This is a shift from how the mood has been like in the market for the past couple of months.

The Fear & Greed Index was previously in the greed zone since June, but the latest decline in BTC’s price has meant the investors have finally let go of bullish sentiment.

If history is anything to go by, this flip in trader mentality could actually turn out to be a positive sign for Bitcoin and other cryptocurrencies. The market often tends to move in the direction that goes contrary to the expectations of the majority, with an excess of FUD facilitating bottoms and overhype resulting in tops.

This effect was seen in action during the aforementioned June sentiment low, which coincided with BTC’s bottom under $99,000. The turnaround in the asset only required an index value of 42, but generally, a more powerful fear sentiment is needed before a bottom can occur.

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It now remains to be seen whether the latest dip into fear is enough to induce a reversal in Bitcoin and other coins, or if sentiment will deteriorate further.

Featured image from Dall-E, Alternative.me, chart from TradingView.com

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Hassan Shittu

Journalist

Hassan Shittu

About Author

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in…

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August 1, 2025

Bitcoin plunged below $115,000 on Friday as renewed political pressure from former President Donald Trump unsettled markets.

The top cryptocurrency dropped to $113,164, its lowest in weeks, triggering over $200 million in liquidations from leveraged long positions and raising fresh concerns over investor confidence. The drop comes amid escalating geopolitical tension.

Trump Orders Submarine Move Amid Russia Tensions, Bitcoin Reacts to Risk Fears

Trump announced the repositioning of two U.S. nuclear submarines in response to comments by former Russian President Dmitry Medvedev, now deputy chairman of Russia’s Security Council. Medvedev had criticized Trump’s ultimatum that Russia end its conflict with Ukraine within ten days, calling it “a step towards war.”

“Based on the highly provocative statements of the former president of Russia, Dmitry Medvedev, […] I have ordered two nuclear submarines to be positioned in the appropriate regions,” Trump wrote on Truth Social.

He added that “Words are very important and can often lead to unintended consequences. I hope this will not be one of those instances.”

Bitcoin’s price decline followed these remarks from Trump, reflecting broader investor anxiety as tensions between nuclear powers rise.

Friday’s market reaction also follows Trump’s public attacks on U.S. economic institutions. The former president accused Erika McEntarfer, Commissioner of Labor Statistics, of manipulating jobs data ahead of the 2024 election to help Kamala Harris.

He called for her immediate removal and claimed the Bureau had “faked the jobs numbers” by overstating employment growth.

“We need accurate Jobs Numbers,” Trump wrote. “She will be replaced with someone much more competent and qualified.”

He also turned his attention to the Federal Reserve, sharply criticizing its chair, Jerome Powell. Trump claimed the Fed’s pre-election rate cuts were politically motivated and called Powell “a stubborn MORON.”

“Jerome ‘Too Late’ Powell must substantially lower interest rates NOW,” he wrote. “IF HE CONTINUES TO REFUSE, THE BOARD SHOULD ASSUME CONTROL AND DO WHAT EVERYONE KNOWS HAS TO BE DONE!”

While presidents traditionally avoid interfering with central bank decisions, Trump urged Fed officials to overrule Powell and slash rates to support what he described as a booming economy under his leadership.

The Fed has held rates steady for five consecutive meetings, citing inflation concerns. But Trump, in a flurry of posts, accused Powell of damaging the economy and failing to act on the consequences of new tariffs.

Fed Governor Adriana Kugler Resigns, Opening Key Seat for Trump

Amid the political pressure, Federal Reserve Governor Adriana Kugler announced her resignation on Friday, creating a key vacancy at the central bank. Kugler, a Biden appointee, joined the Fed’s Board of Governors in 2023 and was a permanent voting member on the Federal Open Market Committee.

She did not give a reason for her early departure but stated she would return to Georgetown University in the fall.

“It has been an honor of a lifetime to serve,” Kugler wrote in a letter addressed to Trump. Her exit, nearly 18 months before her term was set to expire, clears a path for Trump to nominate a replacement.

Kugler had recently voiced support for keeping rates steady, pending a clearer picture of how tariffs are affecting inflation. She was absent during this week’s policy vote, where two Trump-appointed members dissented, favoring a rate cut.

Fed Chair Jerome Powell thanked Kugler for her service, noting her contributions brought “impressive experience and academic insights” to the Board.

Bitcoin Slides as Political Tensions and Market Jitters Weigh on Sentiment

Bitcoin slipped further on Friday as rising geopolitical tensions and cautious investor sentiment added pressure to already fragile markets. The cryptocurrency is now trading just 7% below its all-time high of $123,182 set in mid-July, though momentum in derivatives markets is showing signs of cooling.

Notably, the monthly futures premium for Bitcoin has narrowed to 6%, down from earlier highs this month. Analysts say the drop reflects reduced appetite for leveraged long positions, suggesting traders are becoming more risk-averse despite ongoing institutional interest.

Bitcoin’s recent price behavior has also contributed to uncertainty. Rather than acting as a hedge, the asset has moved in step with tech stocks, exposing it to broader macro and political shocks. With tensions between the U.S. and Russia flaring again this week, risk appetite appears to be shifting.

The political back-and-forth added to a market already grappling with trade friction and weak economic data. While gold has remained stable around $3,350, it has offered little relief for those hoping Bitcoin would act as a safe-haven alternative. Traders appear to be rotating into cash and short-term government bonds as volatility increases.

Despite the decline, Bitcoin remains well above its January levels. However, with global uncertainty rising, traders may remain cautious in the short term.

Amid the broader pullback, some investors are reassessing Bitcoin’s long-term role. Bridgewater Associates founder Ray Dalio, previously skeptical, has updated his outlook. Speaking on a recent podcast, Dalio recommended allocating up to 15% of a portfolio to gold or Bitcoin as a hedge against U.S. debt and inflation.

“The U.S. is entering a debt doom loop,” he said, referencing Treasury forecasts of $12 trillion in new debt within the next year.

Dalio noted that while Bitcoin remains volatile and faces regulatory questions, its role as a store of value is becoming harder to ignore.

AI-focused NEAR token slumped by 5% on Friday despite the launch of Bitwise’s NEAR exchange-traded product (ETP).

The sell-off comes during a muted day for cryptocurrencies with bitcoin also falling back from its test of a new record high.

The launch of Bitwise’s NEAR Staking ETP marks a significant milestone for institutional adoption of the protocol, allowing regulated investors to gain exposure to NEAR’s staking rewards through a traditional investment vehicle.

Technical analysis

• NEAR has experienced a substantial decline of $0.124 (5.42%) over the 24-hour period from 3 July 15:00 to 4 July 14:00, with price dropping from $2.294 to $2.170.
• The asset established a clear resistance zone around $2.290-$2.298 with multiple rejections, while breaking below key support at $2.220 on heavy volume (2.7M) during the 04:00 hour.
• The bearish momentum intensified with a volume spike to 2.83M at 07:00 when price reached its lowest point at $2.172, forming a potential double bottom with the 13:00 candle’s $2.167 low, suggesting possible stabilization despite the overall negative trend.
• During the last 60 minutes from 4 July 13:06 to 14:05, NEAR experienced significant volatility with a net decline of $0.018 (0.82%), dropping from $2.192 to $2.170.
• The asset established a clear resistance at $2.177 with multiple rejections, while showing notable selling pressure at 13:37-13:39 when price plummeted from $2.174 to $2.169 on heavy volume (119K).
• A brief recovery attempt occurred at 13:53 with a spike to $2.175 on substantial volume (77K), but momentum failed to sustain, with price ultimately settling into a consolidation pattern between $2.169-$2.171 in the final minutes of the period.

CD20 Index Plunges 2% as Bearish Momentum Accelerates

The CD20 index experienced significant downward pressure in the last 24 hours from 3 July 17:00 to 4 July 16:00, dropping from $1,788.41 to $1,756.06, representing a decline of $32.35 or 1.81%.

The overall trading range during this period was $45.74 (2.56%), with the peak of $1,801.60 occurring on 3 July 21:00 followed by consistent selling pressure that intensified after 13:00 on 4 July, when prices fell sharply by nearly $15 within a single hour.

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After setting a new all-time high (ATH) earlier in the month, the Bitcoin Hashrate has seen a crash. Here’s what this could mean for the asset.

7-Day Average Bitcoin Hashrate Has Plummeted Since The Record

The “Hashrate” refers to an indicator that measures the total amount of computing power that miners have connected to the Bitcoin network for the purpose of mining. The metric’s value is measured in terms of hashes per second (H/s), or the more practical exahashes per second (EH/s).

When the value of this indicator rises, it means the miners are adding more power to the blockchain. Such a trend suggests BTC mining is looking profitable to these chain validators.

On the other hand, the metric going down can imply some of the cohort’s members are coming under pressure, so they have decided to scale back on their facilities.

Now, here is a chart from Blockchain.com that shows the trend in the 7-day average of the Bitcoin Hashrate over the past year:

Looks like the value of the metric has sharply gone down in recent days | Source: Blockchain.com

As displayed in the above graph, the 7-day average Bitcoin Hashrate saw a rapid increase to a new ATH of about 943.6 EH/s on June 15th. Since this peak, however, the indicator has witnessed a sharp reversal. Today, the miners’ computing power amounts to 834.8 EH/s, more than 11% down compared to the record.

Considering the fast decline, it’s possible that miners are feeling financial pressure. And indeed, according to an on-chain model, this group can currently be classified as extremely underpaid.

The miners may also be feeling bearish about the cryptocurrency, considering all the geopolitical events that have occurred since the high in the Hashrate, feeding into market uncertainty.

Miners depend on growth in the asset’s price to improve their margins, so their behavior is often linked to the trend in the coin itself. Sometimes, miners do expand or decommission operations anticipating future action, though these bets don’t always pay off.

From the chart, it’s visible that this isn’t the first time this year that the indicator has seen a quick top followed by a rapid decline. Since April, the metric has now displayed this pattern four times, with the peak setting a slightly bigger record in each instance.

Considering this trend, it’s possible that the latest drawdown may also just be similar, and the 7-day average Hashrate would rebound before long. That said, in the scenario that the decline does elongate beyond the current point, which is already close to the low of the metric’s recent range, then it could potentially signal that a real shift may be taking place among the miners.

Generally, though, miners changing the Hashrate doesn’t impact the Bitcoin price, at least not directly. What a decline can signal, however, is distress among the group, which can force them into selling.

BTC Price

At the time of writing, Bitcoin is floating around $105,100, down 0.3% in the last seven days.

The trend in the BTC price over the past five days | Source: BTCUSDT on TradingView

Featured image from Dall-E, Blockchain.com, chart from TradingView.com

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GameStop (GME) shares fell 11.7% in after-hours trading after announcing a $1.75 billion private convertible senior note offering — extending its debt financing strategy that could fund additional Bitcoin purchases.

GME had already slid 5.34% to $28.55 during normal trading hours on Wednesday after GameStop reported a first-quarter revenue fall of 17% in after-hours the day before. 

GameStop recently bought $513M in Bitcoin

The US video game and consumer electronics retailer didn’t explicitly state that the proceeds would be used to fund additional Bitcoin purchases, but said it intends to make investments in a manner consistent with GameStop’s investment policy in addition to potential acquisitions.

Part of GameStop’s most recent $1.5 billion raise through convertible notes was used to purchase 4,710 Bitcoin (BTC) — worth $513 million at the time — on May 28.

Convertible senior notes have been an increasingly common financial instrument for public companies seeking to bolster their Bitcoin treasuries. 

GameStop’s 4,710 Bitcoin stash currently positions it as the 13th largest corporate Bitcoin holder, according to BitcoinTreasuries.NET data.

The $1.75 billion private offering carries a 0% interest rate, with the convertible senior notes due on June 15, 2032.

The offering includes an option for initial purchasers to buy an additional $250 million in notes. 

Related: The Blockchain Group to raise $340M for Bitcoin treasury

The notes are convertible into either cash, GME stock, or a mix of both, depending on GameStop’s decision.

GameStop fell earlier on Q1 results

The latest offering comes as GameStop reported a $44.8 million profit in the first quarter, reversing a $32.3 million loss from Q1 2024. 

However, revenues fell 17% to $732.4 million, missing industry expectations and triggering a considerable fall in after-hours on June 10.

GME shares have been down since first Bitcoin purchase

According to Google Finance, GME shares have fallen 18.5% since GameStop confirmed its first Bitcoin purchase on May 28.

When factoring in the 11.7% fall in after-hours, GameStop has now erased all the gains it made since March 25, when it first announced plans to invest in Bitcoin.

GME’s stock movement contrasts with most public companies that have seen their share prices rise after announcing Bitcoin purchases or plans to do so.

Magazine: Older investors are risking everything for a crypto-funded retirement

]]> https://earlybirdsinvest.com/gamestop-plunges-12-after-proposing-new-1-75b-debt-offering/feed/ 0 41504 https://earlybirdsinvest.com/solana-plunges-5-as-midnight-sell-off-signals-institutional-exit/ https://earlybirdsinvest.com/solana-plunges-5-as-midnight-sell-off-signals-institutional-exit/#respond Sun, 25 May 2025 16:22:08 +0000 https://earlybirdsinvest.com/solana-plunges-5-as-midnight-sell-off-signals-institutional-exit/

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On-chain data shows the Ethereum transaction fee has dropped to the lowest level in years recently. Here’s what this could mean for ETH’s price.

Ethereum Average Fees Now Valued At Just $0.168

In a new Insight post, the on-chain analytics firm Santiment has discussed the latest trend in the Average Fees of Ethereum. The “Average Fees” is a metric that, as its name suggests, keeps track of the average amount of fees that senders on the ETH network are attaching with their transactions.

This indicator’s value directly correlates to the amount of traffic that the blockchain is dealing with. The reason behind this lies in the fact that the network only has a limited capacity to handle transfers.

When the chain is busy, transfers can remain stuck in waiting until the transactions ahead of them clear out. Those who want their transactions to be processed ASAP can choose to attach a larger-than-average fee, so that the validators prioritise them.

In times of especially high traffic, this kind of competition among users can quickly drive the Average Fees up to significant levels. When there is little activity, however, senders have little incentive to pay any notable amount of fees, so the metric’s value can remain low.

It would appear that Ethereum has been witnessing the latter kind of conditions recently, as the Average Fees have registered a drop.

Looks like the value of the metric has declined to a low level in recent days | Source: Santiment

As displayed in the above graph, the Ethereum Average Fees have fallen to a low of $0.168 recently, which is the lowest that it has been since 2020. This means that activity on the network is historically low at the moment.

According to the analytics firm, this may not actually be so bad from a trading perspective, as low fee periods can often precede rebounds in the cryptocurrency’s price.

Below is a chart that shows an example of this trend in action:

The past trend in the transaction fees of ETH | Source: Santiment

As is visible in the above graph, the Ethereum Average Fees falling under the $1 mark back in 2023 led to bullish momentum for the asset. The explanation behind this pattern may lie in the fact that low-fee periods can indicate disinterest from the crowd.

Historically, ETH and other digital assets have tended to move in a way that goes contrary to the expectation of the majority. This means that a lack of optimism can lead to rebounds, while excessive hype can result in tops. From the chart, it’s apparent that ETH’s Q1 2024 top came as the metric surpassed $15, indicating a plethora of excitement.

“Generally, fee levels under $1 are a pretty promising sign that the crowd has become disinterested,” notes the analytics firm. “Just remember that there is no set guaranteed “bottom” or “top” level every time fee costs breach below or above a certain level.”

ETH Price

At the time of writing, Ethereum is trading around $1,600, up more than 1% in the last 24 hours.

Looks like the price of the asset hasn't moved much recently | Source: ETHUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.