Bitcoin's Recent Plunge Sparks Panic Searches
Bitcoin's recent price decline has triggered a wave of concern among investors, with Google Trends data showing a significant spike in searches for terms like 'Bitcoin going to zero' and 'Is Bitcoin dead?' These queries have reached their highest levels since 2022, reflecting growing anxiety in the crypto market.
Market Sentiment Hits 'Extreme Fear'
The Crypto Fear and Greed Index, which analyzes market sentiment using variables like volatility and social media activity, recently hit a score of 5—matching its lowest-ever mark from 2019. This indicates the market is in 'Extreme Fear' territory, a stark contrast to higher scores that typically signal greed and rising prices.
Price Predictions and Expert Analysis
As of Thursday afternoon, Bitcoin was trading around $66,561, down approximately 47% from its October all-time high of $126,080. Predictors on platforms like Myriad Markets and Polymarket are leaning bearish:
- Myriad Markets gives about 64% odds that Bitcoin will 'dump' to $55,000 before pumping to $84,000.
- Polymarket traders are even more confident, with 68% odds that BTC will hit $60,000 before reaching $80,000.
- On Kalshi, predictors estimate a 36% chance that Bitcoin will trade below $40,000 this year.
Despite the pessimism, experts don't foresee Bitcoin hitting zero. Standard Chartered analysis suggests a potential drop to $50,000 before a rebound to all-time highs. Similarly, CryptoQuant analysts have identified $55,000 as Bitcoin's 'ultimate bear market bottom,' a level that may serve as a consolidation point before recovery.
Undeterred Advocates and Continued Accumulation
Prominent Bitcoin supporters remain steadfast. Michael Saylor, co-founder and Executive Chairman of MicroStrategy, continues to advocate for Bitcoin accumulation, stating the firm will buy Bitcoin 'every quarter, forever.' MicroStrategy's Bitcoin holdings are valued at approximately $47 billion, underscoring long-term confidence despite recent losses.
Saylor addressed the 'going to zero' fears directly: 'If you think it's going to zero, then we'll deal with that. But I don't think it's going to zero.'
Current Market Snapshot
Bitcoin is down 0.6% in the last 24 hours, highlighting ongoing volatility. The combination of rising panic searches, extreme fear sentiment, and mixed expert predictions paints a complex picture for Bitcoin's near-term trajectory.
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