Panic Vs Pandemic: Crypto Market Is More Fearful Than On Black Thursday

Following the Bitcoin and wider crypto crash, investors successful the marketplace are present much fearful than they were during Black Thursday successful March 2020.

Crypto Fear And Greed Index Now Has An Extreme Fear Value of “7”

The “fear and greed index” is an indicator that tells america astir the wide marketplace sentiment among crypto investors close now.

The metric uses a numeric standard that runs from zero to 100 for representing this sentiment. All values of the scale beneath 50 connote that investors are fearful astatine the moment, portion those supra the threshold mean they are presently greedy.

Indicator values of much than 75 and little than 25 signify sentiments of utmost greed and utmost fear, respectively.

Now, present is simply a illustration from the play Arcane Research study from yesterday that shows the inclination successful the crypto fearfulness and greed scale implicit the past year:

Looks similar the worth of the metric has plunged down successful caller days | Source: Arcane Research's The Weekly Update - Week 23, 2022

As you tin spot successful the supra graph, the crypto fearfulness and greed scale has been successful the “extreme fear” territory for a portion now.

In fact, this streak of utmost fear, which has been moving for 57 consecutive days now, is the longest the indicator has ever observed.

Related Reading | Has Bitcoin Hit Bottom Yet? Here’s What On-Chain Data Says

Also, astatine the clip the study was released (which is yesterday), the scale had a worth of 8, which was the lowest worth since March 2021.

This sentiment was really worse than the Black Thursday lawsuit from backmost past (which occurred owed to the COVID-19 pandemic).

Today, the crypto fearfulness and greed scale has further dropped successful value, present showing conscionable 7.

The sentiment successful the crypto marketplace present seems to beryllium the worst it has been since 2019 | Source: Alternative.me

Historically, utmost fearfulness periods person been erstwhile coins similar Bitcoin person bottomed out, and utmost greed stretches has been erstwhile tops person tended to form.

Because of this, immoderate investors see precise debased sentiment values to beryllium perfect buying opportunities. As Warren Buffet’s celebrated punctuation says, “be fearful erstwhile others are greedy, and greedy erstwhile others are fearful.”

Related Reading | Here’s What Would Happen If Bitcoin Breaks Below $20K, Arthur Hayes Predicts

The study notes, however, that portion buying has been profitable successful specified times before, catching a falling weapon similar present isn’t an casual task.

BTC Price

At the clip of writing, Bitcoin’s terms floats astir $21.1k, down 30% successful the past 7 days. Over the past month, the crypto has mislaid 30% successful value.

The beneath illustration shows the inclination successful the terms of the coin implicit the past 5 days.

The worth of Bitcoin has crashed down implicit the past fewer days | Source: BTCUSD connected TradingView Featured representation from Unsplash.com, charts from TradingView.com, Arcane Research