When Greed? Bitcoin Market Crushed Under One Full Month Of Fear

Data shows the Bitcoin marketplace has been stuck successful a authorities of utmost fearfulness since the 5th of May, meaning this tally of bottommost sentiment has gone connected for much than a afloat period now.

Bitcoin Fear And Greed Index Continues To Point At An Extremely Fearful Market

According to the latest play study from Arcane Research, the crypto marketplace is presently going done its longest tally of utmost fearfulness since the COVID clang backmost successful 2020.

The “fear and greed index” is an indicator that tells america astir the wide capitalist sentiment successful the Bitcoin and wider crypto market.

The metric uses a numeric standard that goes from 1 to 100 for displaying this sentiment. When the worth of the scale is little than fifty, it means investors are fearful astatine the moment.

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On the different hand, values of the indicator supra the threshold connote that investors presently stock a sentiment of greed.

Values towards the extremity of the scope of beneath 25 and supra 75 bespeak sentiments of utmost fearfulness and utmost greed, respectively.

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

The worth of the metric seems to person been precise debased precocious | Source: Arcane Research's The Weekly Update - Week 22, 2022

As you tin spot successful the supra graph, the Bitcoin fearfulness and greed scale is showing a worth of 15 close now, suggesting that the wide sentiment is that of utmost fear.

These debased values of the metric person present been determination for much than a period now. Such a agelong streak past occurred pursuing the COVID clang 2 years ago. Then, the tally lasted for 48 consecutive days earlier the sentiment saw immoderate improvement.

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Historically, bottoms person tended to signifier during periods of utmost fear, portion tops person occurred during utmost greed.

Because of this, immoderate investors judge the erstwhile periods supply perfect buying opportunities for Bitcoin, portion the second could beryllium fitting selling points.

The trading method that follows this thought is called contrarian investing. Warren Buffet’s celebrated punctuation encapsulates it best:

Be fearful erstwhile others are greedy, and greedy erstwhile others are fearful.

If this doctrine is thing to spell by, past the existent sentiment whitethorn mean present could beryllium the clip to bargain Bitcoin.

At the moment, it’s unclear however agelong this streak of utmost fearfulness volition last. It could beryllium arsenic agelong oregon longer than the past one, oregon the sentiment whitethorn soon spot an uplift.

BTC Price

At the clip of writing, Bitcoin’s terms floats astir $30.4k, down 3% successful the past week.

Looks similar the worth of BTC has jumped backmost supra $30k | Source: BTCUSD connected TradingView Featured representation from Unsplash.com, charts from TradngView.com, Arcane Research