Mt Gox Repayments Start After a Decade Causing Drop in Bitcoin Fear and Greed Index

The commencement of Mt.Gox cryptocurrency repayments to creditors on Friday, after a decade of waiting, has left many traders feeling surreal. Those affected by the collapse of Mt.Gox in 2013-2014 will finally receive their funds within the next three months.

As a result of this development, the Bitcoin fear and greed index has shifted from a neutral position to one of fear, dropping from around 44 percent to approximately 29 percent in the last 24 hours. Interestingly, this drop in the crypto fear and greed index marks the lowest point in 2023, coinciding with Bitcoin’s price hovering around $18,000.

The current Bitcoin Fear and Greed Index stands at 29, reflecting fear, with the current price at $56,978.

Looking ahead, the summer could spell trouble for crypto traders as Bitcoin’s price recently fell below the 200-day Moving Average and a crucial support level of $56,000. Many indicators suggest a bearish sentiment in the market, with predictions of a longer consolidation period in the crypto industry until factors like US interest rate cuts and upcoming elections come into play.

Despite the gloomy outlook, there is a silver lining for crypto traders. With stock market indexes showing upward trends, analysts are optimistic about a potential rebound in the crypto market. Additionally, the recent approval of spot BTC and Ethereum ETFs in various jurisdictions, alongside the upcoming listing of spot Ether ETFs in the US, could inject billions of dollars into the crypto industry in the coming months.

In conclusion, while the Mt.Gox repayments may have raised concerns about the impact on Bitcoin’s price, many believe that the crypto market is poised for a positive turnaround in the near future.