Crypto Crash Alert: Bitcoin (BTC)Price Might Drop To $50K This Weekend

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Bitcoin fell 3% to $56,000 (76 million won) on Friday amid concerns over a U.S. economic slowdown and heightened market anxiety before August’s employment data release. A Bitfinex report predicts a possible 20% drop to $40,000 if the Federal Reserve raises interest rates by 50 basis points this month. The crypto market is expected to remain weak due to low demand and bearish sentiment. One analyst sees a possibility of BTC’s deep dive to $50K. 

Let’s see what’s brewing in the crypto space!

Market Sentiment Plunges to Extreme Fear

Bitcoin is encountering a rough patch, with BitMEX co-founder Arthur Hayes predictions suggesting it might drop below $50,000 this weekend. 

This forecast comes as the Crypto Fear & Greed Index plummets to 22, indicating “extreme fear”—the lowest level since August 8. The index’s descent reflects heightened uncertainty and pessimism among investors, marking a significant shift in market sentiment.

Recently, Bitcoin’s price has dropped to $55,838, recovering slightly to $56,585. This recent decline has wiped out $29.7 billion from Bitcoin’s market capitalization, according to CoinMarketCap data.

Hayes has voiced his bearish outlook on X, stating, “$BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”

His prediction comes amid growing concerns about the U.S. economy and disappointing jobs data, adding to the market’s pessimism.

Wider Crypto Market Decline

The downturn isn’t isolated to Bitcoin. Other major cryptocurrencies have also faced declines. Ether has fallen by 2.23%, Solana by 2.82%, and XRP by 2.19%. This broader market slump has resulted in $94.26 million in liquidations, including $36.71 million in Bitcoin longs and $17.36 million in Ethereum longs. The market-wide drop underscores the growing unease among investors and the potential for further declines in the coming days.

How Low Can Bitcoin Go?

As Bitcoin struggles, the extreme fear reflected in the Crypto Fear & Greed Index highlights a period of increased uncertainty. Hayes’ prediction of a potential dip to $50,000 reflects the growing sentiment of caution and anxiety among market participants. Investors are keeping a close watch on economic indicators and market trends, which will likely influence the direction of Bitcoin and other cryptocurrencies shortly.

Moreover, many analysts suggest Bitcoin could fall to $46,000, a level not seen since February. Other predictions, like that of 10x Research, see the low $40,000s as a potential entry point for a bull market. Others, such as Moustache, believe Bitcoin could find support around $57,000, based on historical patterns.