Crypto sentiment index dips back to March ‘fear’ levels amid Binance lawsuit

The Crypto Fear and Greed Index– a tool that measures more comprehensive market belief towards Bitcoin and the more comprehensive crypto market– has dipped to a level of “fear” not witnessed considering that March 11 this year, when Circles USD coin (USDC) briefly lost its dollar-peg. The stumble in market belief is available in the wake of the United States Securities and Exchange Commission (SEC) filing a suit versus Binance, its U.S. arm of operations and its CEO Changpeng Zhao. The SEC pushed a total of 13 charges against the exchange and its affiliates for stopping working to sign up as a securities exchange and operating illegally in the United States.The Bitcoin Fear and Greed Index. Source: Alternative.me.The index works by aggregating a mixture of indicators to gauge market sentiment. It integrates metrics consisting of cost volatility, momentum, trading volume with information from social networks and Google patterns to form a total image of financiers emotions towards Bitcoin and the broader crypto market. Much of the unfavorable sentiment owes to the instant plunge in the value of cryptocurrencies following the SECs newest relocation against Binance. Blue-chip crypto assets such as Bitcoin and Ethereum (ETH) are down 4.1% and 3.1% respectively in the last 24 hours according to information from Cointelegraph Price Index. The larger altcoins also took a whipping. At the time of publication, Cardano (ADA) is down 6.4% in the last 24 hours while Solana (SOL) has actually fallen 7.4%. Related: SEC problem tips at why Brian Brooks resigned as Binance.US CEOTraders with employment opportunities on crypto derivatives markets also suffered consequences, with more than $280 million worth of liquidations occurring considering that the announcement of the lawsuit. Total liquidations in the past 12 hours. Source: Coinglass.Unsurprisingly, traders with open “long” positions– a leveraged bet on the cost of crypto properties increasing– were the hardest hit, representing $261.75 million (92%) of the general liquidations. Short traders experienced $20.7 million in liquidations. The leading two digital possessions were responsible for around 43% of these losses.Asia Express: Yuan stablecoin team apprehended, WeChats new Bitcoin costs, HK crypto rules

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