The Crypto Fear & Greed Index, which gauges market emotions on a scale from 0 to 100, reached a low score of 22 on September 6, indicating a notable seven-point drop from the previous day when sentiment was classified as “fear.” This score marks the lowest level since it recorded a score of 20 on August 8 and is the first time it has entered the “extreme fear” category since August 12, when it recorded a score of 25.

Bitcoin (BTC) has seen a decline of 2.7% over the past 24 hours, briefly hitting a low of $55,838 after falling from above $58,000, resulting in a loss of approximately $29.7 billion in its market capitalization. It has recently rebounded slightly, trading at around $56,533.

Arthur Hayes, the former CEO of the crypto exchange BitMEX, stated in a recent post, “BTC is heavy. I’m gunning for sub $50k this weekend. I took a cheeky short,” highlighting his bearish outlook.

Amidst these fluctuations, Bitcoin struggles to muster momentum due to rising concerns about the sluggish performance of the U.S. economy. Recent U.S. jobs data released on September 5 fell short of economic forecasts, intensifying worries regarding a potential Federal Reserve interest rate cut.

In the wake of Bitcoin’s recent downward trend, other major cryptocurrencies have also taken a hit. Ethereum (ETH) dropped by 2.23%, Solana (SOL) declined 2.82%, and XRP fell by 2.19%. This widespread decrease in value resulted in approximately $94.26 million worth of liquidations in the past day, particularly impacting those who had bet on a rising Bitcoin price, according to CoinGlass.

In total, over $71 million worth of long positions were liquidated, including approximately $36.71 million in Bitcoin long positions — nearly 40% of the day’s total. This was followed by $17.36 million in liquidated Ethereum long positions.