The Bitcoin (BTC) price had its worst day in months yesterday. The Bitcoin price has suffered a total decline of more than 7% to a low of below $59,000, the lowest price in almost two months.

Sentiment on the crypto market has already fallen considerably in recent weeks, but yesterday was a real blow in that respect. The well-known Fear & Greed Index has even plummeted to its lowest level since early 2023.

Bitcoin sentiment plummets

There is currently a lot of fear in the crypto market. The Bitcoin price has fallen below the feared $60,000 for the first time since May 2 after a merciless drop of more than 7%.

The day started at a price just above $62,000, but the price suffered blow after blow. Late in the evening, Bitcoin found a bottom around $58,400 before quickly recovering above $60,000.

Despite the encouraging jump, a lot of pessimism has flowed into the crypto market. Many investors seem to have given up hope on the bull market, and that is strongly reflected in the Fear & Greed Index.

In fact, this well-known indicator of market sentiment suffered one of its biggest declines in recent years yesterday, putting it in the ‘fear’ zone. The last time market sentiment was fearful according to the indicator was early May (a score between 24 and 50).

At the moment, the Fear & Greed Index is deep in the fear zone with a score of 30. The last time the index was at such a level was on January 11, 2023. At the time, the Bitcoin price was still around $ 17,000, only two months after the collapse of crypto exchange FTX.

BTC crash blamed on Mt. Gox

The sharp drop in the Bitcoin price, as well as the Fear & Greed Index, was caused by the bankrupt crypto exchange Mt. Gox. Yesterday, the stock exchange, which collapsed in 2014, went public with the news that it will finally start returning more than 140,000 Bitcoins from the beginning of July.

Mt. Gox lost a total of 850,000 Bitcoins in 2014 when it went under following a series of hacks and malfeasance. In the years after the bankruptcy, roughly 142,000 Bitcoins were recovered, but victims are still waiting for their distribution to this day.

Now the process is finally set in motion, and as a result the crypto world is in an uproar about the potential selling pressure that is coming our way. More than $8 billion worth of Bitcoins will be returned, and could be dumped on the market.

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