Two Months Of Extreme Fear Leaves Crypto In Panic, Bitcoin At $20K

Data shows the crypto marketplace has been observing utmost fearfulness for 2 months now, leaving investors successful panic arsenic Bitcoin has crashed to $20k.

Crypto Fear And Greed Index Is Still Pointing To “Extreme Fear”

As per the latest play study from Arcane Research, the cryptocurrency marketplace has present been facing utmost fearfulness for 2 months now, the longest streak successful history.

The “fear and greed index” is an indicator that measures the wide sentiment among investors successful the crypto market.

The metric uses a numeric standard that runs from zero to 100 for representing this sentiment. All values greater than 50 connote that investors are greedy astatine the moment, portion those beneath the threshold signify a fearful market.

Edge values of supra 75 and beneath 25 mean holder sentiments of “extreme greed” and “extreme fear,” respectively.

Now, present is simply a illustration that shows the inclination successful the crypto fearfulness and greed scale implicit the past year:

Looks similar the worth of the indicator has been precise debased precocious | Source: Arcane Research's The Weekly Update - Week 24, 2022

As you tin spot successful the supra graph, the crypto fearfulness and greed scale has a worth of 9 close now, suggesting that the marketplace is highly fearful.

Such debased sentiment values person present persisted for 2 months now, making this the longest utmost fearfulness tally the marketplace has ever seen.

Related Reading | Crypto Market Crashes Further: Bitcoin (BTC) and Ethereum (ETH) Value Slumps

These indicator values person stayed portion the full crypto assemblage has gone done a clang and a ample portion of the investors person gone into the red.

Historically, streaks with utmost fearfulness person been erstwhile coins similar Bitcoin person tended to signifier bottoms (and similarly, tops person occurred during utmost greed).

Because of this, immoderate analysts judge an highly fearful marketplace tin supply caller buying opportunities for cryptos.

Related Reading | Bitcoin “Diamond Hands” Start To Break As 1yr+ Supply Ramps Up Selling

The trading method that follows this thought is called “contrarian investing.” This celebrated punctuation from Warren Buffet encapsulates the philosophy: “be fearful erstwhile others are greedy, and greedy erstwhile others are fearful.”

If the humanities inclination is thing to spell by, the existent agelong tally of utmost fearfulness whitethorn beryllium erstwhile Bitcoin and different coins observe bottoms. And if so, present whitethorn beryllium erstwhile a contrarian capitalist volition judge to beryllium an perfect buying point.

Bitcoin Price

At the clip of writing, BTC’s terms floats astir $20.4k, down 1% 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 seems to person dropped down implicit the past time | Source: BTCUSD connected TradingView Featured representation from Thought Catalog connected Unsplash.com, charts from TradingView.com, Arcane Research