Crypto
Bitcoin Breaks Fear Records Following Coldcard’s $102 Million Hack
Bitcoin fear hits record lows after the Coldcard hack as bearish signals and institutional outflows pressure BTC's recovery outlook.
BLOCKINSIDERLoadingBitcoin fear hits record lows after the Coldcard hack as bearish signals and institutional outflows pressure BTC's recovery outlook.
As the bear market continues to thrive, Bitcoin holders, investors, developers, and miners are all bearing the brunt.
This has created a deep fear in the hearts of investors, which is visible in the overall interest expressed towards BTC and also in how the holders are acting.
The most recent victim of crypto market hacking is Coldcard. The wallet provided has been estimated to have over 1,596 BTC worth $102 million stolen via 7,300 addresses, and the threat continues to persist.
This situation is exerting further pressure on how the investors are acting visibly in their sentiment. Bitcoin sentiment has dropped to an all-time low as Fear continues to strengthen. Santiment data shows that the positive-to-negative commentary ratio has fallen to 0.54 since July 31.
This was further exaggerated by Michael Saylor’s Strategy selling 1,638 BTC last week for about $105 million. In addition to this, a16z-backed Web3 game developer Proof Of Play announced its shutdown today.
The company stated that it failed to build a scalable and sustainable product and business model to validate its vision.
Bitcoin investors are taking these developments rather seriously.
The ING (Internationale Nederlanden Groep) bank reiterated that Bitcoin’s long-term outlook is bearish. BTC rebounded from recent lows, but the chances of the crypto king sustaining this recovery are low.
ING warns that the $65,670 to $69,900 range is a strong resistance zone that can hold BTC back. The bank further warned that the next zone where BTC could settle is the support at $54,450. However, a drop below this support could trigger a long-term sell signal, extending the bearish trend.
This outlook is further backed by the Bitcoin investors, who seem to be returning to their former ways. The exchange net position change metric measures the flow of assets in and out of the exchanges.
The decline observed over the past week is a sign of accumulation taking a hit since the market conditions have failed to improve. If the metric observes a shift from weak accumulation to selling BBTC, its recovery could slow down.
Bitcoin experienced this phase in May and June when selling dominated the market. This resulted in Bitcoin’s price suffering a major drawdown, which the crypto king hasn’t recovered from yet.
Bitcoin’s price has a critical support that has been supporting it for over a month now. The crypto king has maintained $62,207 as a support level, coinciding with the 50% Fibonacci line. While BTC attempted a rise past $67,000 around late July, it was rejected by the bearish conditions.
The Money Flow Index (MFI), however, shows a surge in institutional outflows over the last couple of days. As the indicator slid into the negative zone, BTC price followed the trend, currently sitting at $64,353.
Such outflows tend to signal a shift in institutions’ sentiment, which sits in line with the current investor sentiment as well. If this momentum persists, it won’t be surprising to see BTC fall below $62,207.
This could trigger a cascading decline towards $60,000. But if the institutions change their stance, Bitcoin’s price could see a bounce back. A breach past $67,000 would mark a slight resurgence for BTC, opening the path towards $70,000.
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