Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?
Data shows the Bitcoin market sentiment has remained deep in extreme fear this week as broader financial markets also get fearful.
Bitcoin Fear And Greed Index Shows A Value Of 12 This Week
As per the latest weekly report from Arcane Research, the wider financial market is at its highest level of fear since the COVID crash in 2020.
The “fear and greed index” is an indicator that tells us about the general market sentiment among Bitcoin investors right now.
5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!The metric displays this sentiment using a numeric scale that runs from one to hundred. All values of the index above “50” imply a sentiment of greed, while all those below the cutoff indicate a fearful market.
When the indicator has values towards the end of the range, that is, above 75 or below 25, the market is in a state of extreme greed or extreme fear.
Some investors believe that it’s best to buy when the market is extremely fearful as bottoms have historically tended to happen during such periods.
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Contrarian investing is a trading technique that follows this idea. To quote Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”
Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:
As you can see in the above graph, the Bitcoin fear and greed index has a value of 12 at the moment, indicating a sentiment of extreme fear.
The crypto market isn’t the only one scared, the broader financial markets have also been in a state of extreme fear for a while now.
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The market has been observing the highest extreme fear values since the crash back in 2022 due to the onset of COVID-19.
Currently, it’s unclear if the sentiment has bottomed out or if Bitcoin will bleed more in the coming days, plunging the fear and greed index further.
BTC Price
At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the last seven days. Over the past month, the crypto has lost 24% in value.
The below chart shows the trend in the price of the coin over the last five days.
