The Bitcoin Fear and Greed Index is at 21 today, which indicates a “severe fear” situation in the digital currency market. Some investors consider periods of intense fear as the best time to buy new units and enter the market.
To Report Yesterday, the price of Bitcoin dropped to around $19,800 and attempts to return above $20,000 were unsuccessful; As far as today’s candle has opened below the $20,000 level.
On Friday, the unemployment rate in America for the month of August was published, which shows that this index increased from 3.5% in July to 3.7% in August. New data from the US labor market simultaneously hit the US stock market and digital currencies; While experts expected the “decrease in the unemployment rate” in this country to hit digital currencies.
New statistics show that 315,000 new jobs were created in the US non-farm sector during August, while 350,000 new jobs were expected to be created in the United States during this period. Jerome Powell, head of the US Federal Reserve, warned earlier that economic growth in the country will slow and the unemployment rate will likely rise as the Federal Reserve is fighting inflation by intensifying contractionary monetary policies.
On August 26 (September 4), during a speech, Pavel mentioned the continuation of the implementation of contractionary monetary policies in this country. It was on the same day that Bitcoin started its new downtrend and the price reached below $21,000.
The fear-greed index is now in the extreme fear zone, and despite this, some investors consider periods of extreme fear to be the best time to buy new units and enter the market.
Will Bitcoin fall to $15,000?
Max Gokhman, chief investment officer of AlphaTrAI, believes that the improvement in the labor market situation in the United States may cause a deeper decline in Bitcoin and the price to fall to $15,000.
He previously said that if the statistics for August are stronger than expected, the Federal Reserve will pursue its contractionary monetary policies with more support, and as a result, the price of Bitcoin will probably fall even more; The opposite happened to the statistics of the US labor market, but again, the situation progressed in such a way that the prices were reduced.
Peter Schiff, one of the well-known critics of Bitcoin, held a poll on his Twitter about a week ago and asked his followers whether buyers of Bitcoin under $20,000 get tired sooner or sellers above $20,000.
Most respondents believed that buyers below $20,000 would be disappointed sooner, and Schiff used this result to support his bearish view on Bitcoin. It should be noted that he had predicted at the beginning of 2022 that the price of Bitcoin would probably reach below 10,000 dollars.