Bitcoin fights to hold $29K as fear of regulation and Terra’s UST implosion hit crypto hard

cointelegraph.com:

Bitcoin (BTC) price initially bounced from its recent low at $29,000 but the overall market sentiment after a 25% price drop in five days is still largely negative. Currently, the crypto "Fear and Greed Index," which uses volatility, volume, social metrics, Bitcoin dominance and Google trends data, has plunged to its lowest level since March 2020 and at the moment, there appears to be little protecting the market against further downside.

Regulation is still the main threat weighing on markets and it's clear that investors are taking a risk-off approach to high volatility assets. Earlier this week, during a hearing of the Senate Banking Committee, United States Secretary of the Treasury Janet Yellen called for a regulatory framework on stablecoins and specifically addressed the TerraUSD (UST) stablecoin plunging below $0.70.

Furthermore, the United Kingdom introduced two bills aimed at addressin crypto regulation on May 10. The Financial Services and Markets Bill and the Economic Crime and Corporate Transparency Bill aim to strengthen the country's financial services industry, including supporting "the safe adoption of cryptocurrencies."

Meanwhile, searches for "Bitcoin" and “crypto” on Google are nearing their lowest levels in 17 months.

This indicator could partially explain why Bitcoin is 56% below its $69,000 all-time high because the public interest is low but let's take a look at how professional traders are positioned in derivatives markets.

The top traders' long-to-short net ratio analyzes the positions on the spot, perpetual and futures contracts. From an analysis point of view, it gives a better understanding on whether professional traders are bullish or bearish.

There are occasional methodological discrepancies