Crypto Fear and Greed index shows that traders are afraid

As Crypto Fear and Greed index fell to levels equal to that of October 2020, it can be argued that market sentiment has changed status from “Extreme Greed” to “Fear.”

Share

Bitcoin was enjoying its growth over the past weeks and gaining more and more popularity while in the past days it has been dropping and at times reaching as low as 29K leading to worsening the traders’ mood and a sharp decrease in Crypto Fear and Greed index which is as low as that of October 2020 level.

sdc.png Crypto Fear and Greed Index one-year chart. Source: Alternative.me

The market sentiment changed from “Extreme Greed” to “Fear” when its index fell to 40 on Jan. 22. These two emotions in crypto markets are of paramount importance just like their counterparts in the traditional markets. These two factors suggest the likelihood of traders’ interest in purchasing crypto.

Extreme fear level suggests that the traders are so upset and there’s a nice purchasing chance according to Alternative.me. The opposite also may occur as at times traders turn so greedy.

The aforementioned index shows that on Jan. 6, the investors had been so greedy that the index reached 95 when Bitcoin set a new record in its ATH of 42K two days later. This was followed by a huge price correction for Bitcoin, touching 28K.

sDVB.png Source: Alternative.me

There were predictions for the Bitcoin fall. For instance, Minerd, Chief investment officer at Guggenheim predicted that BTC would plunge as deep as 20K, yet there are others such as Mike Novogratz, the founder of Galaxy Digital, who think BTC will recover and rise again in the long run.

Categories

Cryptocurrency(5)

Latest News

Shiba Inu wallet waitlist hits 1.6 and Robinood COO hails this

1.6 million people are in a queue for Robinhood's crypto wallet as pressure rises on this company to list one of the market's most popular memecoins. ...

NOV 10, 2021

BlockFi files for a Bitcoin ETF with physical backing

The Securities and Exchange Commission's decision on VanEck's proposal for a spot Bitcoin ETF is set to be made on November 14th. ...

NOV 08, 2021

Brazilian federal deputy proposes cryptocurrency as a payment option for workers

Goulart's plan calls for the passage of a new legislation that would provide all Brazilian employees the option to receive their payment in cryptocurrency from ...

NOV 07, 2021

Enjin tends to spend a new $100M to decentralize its metaverse

The fund will be dedicated to building the Efinity blockchain, focusing on seed equity investments. ...

NOV 04, 2021

Tags

Fear & Greed Index

Bitcoin

Tags

Fear & Greed Index

Bitcoin