CryptocurrencyWhen Greed? Bitcoin Market Crushed Under One Full Month...

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

Data shows the Bitcoin market has been stuck in a state of extreme fear since the 5th of May, meaning this run of bottom sentiment has gone on for more than a full month now.

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

According to the latest weekly report from Arcane Research, the crypto market is currently going through its longest run of extreme fear since the COVID crash back in 2020.

The “fear and greed index” is an indicator that tells us about the general investor sentiment in the Bitcoin and wider crypto market.

The metric uses a numeric scale that goes from one to hundred for displaying this sentiment. When the value of the index is less than fifty, it means investors are fearful at the moment.

Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

On the other hand, values of the indicator above the threshold imply that investors currently share a sentiment of greed.

Values towards the end of the range of below 25 and above 75 indicate sentiments of extreme fear and extreme greed, respectively.

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:

Bitcoin Fear And Greed Index

The value of the metric seems to have been very low recently | Source: Arcane Research's The Weekly Update - Week 22, 2022

As you can see in the above graph, the Bitcoin fear and greed index is showing a value of 15 right now, suggesting that the general sentiment is that of extreme fear.

These low values of the metric have now been there for more than a month now. Such a long streak last occurred following the COVID crash two years ago. Then, the run lasted for 48 consecutive days before the sentiment saw any improvement.

Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

Historically, bottoms have tended to form during periods of extreme fear, while tops have occurred during extreme greed.

Because of this, some investors believe the former periods provide ideal buying opportunities for Bitcoin, while the latter could be fitting selling points.

The trading technique that follows this idea is called contrarian investing. Warren Buffet’s famous quote encapsulates it best:

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

If this philosophy is anything to go by, then the current sentiment may mean now could be the time to buy Bitcoin.

At the moment, it’s unclear how long this streak of extreme fear will last. It could be as long or longer than the last one, or the sentiment may soon see an uplift.

BTC Price

At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the past week.

Bitcoin Price Chart

Looks like the value of BTC has jumped back above $30k | Source: BTCUSD on TradingView
Featured image from, charts from, Arcane Research

Original Source Link

Latest News

Apple’s Vision Pro headset makes an impressive first impression

More than any consumer technology before it, mixed reality does not lend itself to effective demos in plain...

Optimism successfully completes ‘Bedrock’ hard fork, reducing deposit times, layer-1 fees

The Optimism network concluded its “Bedrock” upgrade on June 7, reducing deposit times, lowering layer-1 fees and enacting...

UK construction activity rises at fastest pace in 3 months

UK construction activity increased at the fastest pace in three months, driven by growth in the commercial sector...

Spotify’s podcast future is less originals, more creators

This is Hot Pod, The Verge’s newsletter about podcasting and the audio industry. Sign up here for more.When Spotify announced yesterday that...

Merck sues government over Medicare drug price negotiation plan

Merck is suing the federal government over a plan to negotiate Medicare drug prices, calling the program a...

Women-Only Naked Spa Lacks Constitutional Right to Exclude Transgender Patrons with Pensises

From Judge Barbara Jacobs Rothstein's opinion yesterday in Olympus Spa v. Armstrong (W.D. Wash.): The Olympus Spa is a...

Must Read

Bitehaus Hillsdale, Toronto: Photo Tour

Bitehaus Hillsdale, Toronto Building on the success of Bitehaus...

Prince Harry Gets His Day In Court Against Tabloids He Accuses Of Phone Hacking

LONDON (AP) — Prince Harry entered a courtroom...
- Advertisement -

You might also likeRELATED
Recommended to you