Bitcoin Crash: Prices Plummet to February Lows

Market Analysis

The bitcoin price has plunged to its lowest point since February, as the collapsed bitcoin exchange Mt Gox begins moving what could be a tidal wave of coins back into circulation. Bitcoin is under pressure from a bout of risk aversion in global markets that saddled the largest digital asset with its heftiest weekly decline since June 2022.

Crypto Fear and Greed Index

The Crypto Crash has pushed the Fear Greed Index to its lowest point since Bitcoin traded at $17,000 in early 2023. This indicates extreme fear in the market, as investors are selling off their digital assets in anticipation of further losses.

Historical Perspective

Bitcoin's value has fallen by more than half its value since its November 2021 peak, causing the entire cryptocurrency market to collapse. This has led to a wave of selloffs and bankruptcies in the crypto industry, including the recent collapse of the Terra ecosystem and the subsequent de-pegging of the stablecoin UST.

Coinbase Struggles

In addition to the Mt Gox news, the recent stock market sell-off has also weighed on Coinbase, the large cryptocurrency exchange. Coinbase's stock has tanked in recent days, as investors worry about the impact of the crypto crash on the company's bottom line.