Categories: Bitcoin Latest News

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.

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.

Similarly, tops have formed in the past while the market has gone through extreme greed so such times may be ideal for selling.

Related Reading | Bitcoin Whale Breaks 8 Year Long Silence With $30 Million Worth Of BTC Transfer

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:

Looks like the sentiment in the market has plummeted recently | Source: Arcane Research’s The Weekly Update – Week 19, 2022

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.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

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.

It seems like the price of the coin has been moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

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.

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.

Similarly, tops have formed in the past while the market has gone through extreme greed so such times may be ideal for selling.

Related Reading | Bitcoin Whale Breaks 8 Year Long Silence With $30 Million Worth Of BTC Transfer

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:

Looks like the sentiment in the market has plummeted recently | Source: Arcane Research’s The Weekly Update – Week 19, 2022

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.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

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.

It seems like the price of the coin has been moving sideways in the last few days | Source: BTCUSD on TradingViewFeatured image from Unsplash.com, charts from TradingView.com, Arcane Research

Tags: bitcoinBitcoin Extreme FearBitcoin Fear And Greed Indexbtcbtcusd

FeedzyRead More

Recent Posts

Retail Demand Surges for Bitcoin: The Journey Towards $100K and Beyond Begins?

Bitcoin has once again captured the spotlight as retail demand surges to levels not seen…

1 hour ago

Mt. Gox Moves $2.8B in BTC Amid Bitcoin’s Surge Past $100K

An address tied to long-defunct crypto exchange Mt. Gox moved large amounts of BTC to…

3 hours ago

Traders See Even More Bitcoin Buying Pressure as BTC Sets New Record at $103K

Bitcoin broke the landmark $100,000 level earlier Thursday, nearly 15 years after it first went…

3 hours ago

Bitcoin’s Next Move? Coinbase Premium Suggests a Short-Term Rally May Be Brewing

According to recent insights, Bitcoin (BTC) seems to be on the verge of another rally,…

4 hours ago

Bitcoin Hits Major Milestone of $100K, Nears $2 Trillion Market Value

Bitcoin's price has surged past the $100,000 mark for the first time in its history,…

6 hours ago

Bitcoin Price Soars to $100K: A New Era in Crypto Begins

Bitcoin price started a fresh increase and tested the $100,000 level. BTC is now showing…

6 hours ago