Bitcoin Fear and Greed Index Drops as Mt. Gox Repayments Begin After a Decade

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The on-set of Mt.Gox crypto repayments on Friday to creditors after a decade is a surreal experience for most traders. Moreover, crypto traders who were impacted by the 2013-2014 collapse of Mt.Gox will be reimbursed their funds in the next three months. 

As a result, the Bitcoin fear and greed index had dropped from neutral to fear, around 44 percent to around 29 percent respectively, in the past 24 hours. Interestingly, the crypto fear and greed index dropped to the lowest point in 2023 and coincided with the same level when Bitcoin price hovered around $18,000.

Hotter Summer for Crypto Traders Ahead?

After the Bitcoin price closed below the 200-day Moving Average (MA) and dropped below a crucial support level of around $56k, most indicators pointed to further bearish sentiment. According to a report by Matrixport, the crypto industry has entered a longer consolidation period, which could be ended by the highly anticipated US interest rate cuts and the elections.

Silver Lining 

With most of the stock market indexes on a rising trend, most analysts believe a crypto rebound is on the horizon. Moreover, the fourth Bitcoin halving coincided with the approval of spot BTC and Ethereum ETFs in several jurisdictions.

Meanwhile, the upcoming listing of spot Ether ETFs in the United States will be a much-needed relief for the entire crypto industry. 

If the adoption of spot Ether ETFs mirrors that of Bitcoin, billions of dollars will be entering the crypto industry in the subsequent months.