For The First Time in Two Months: Bitcoin’s Fear & Grid Index Shows Fear

Fear

Following the recent decline in the cryptocurrency market, where bitcoin has lost nearly 20% of its value since its all-time high, general investor sentiment has changed dramatically. The Fear & Greed Index has gone into a state of “Fear” for the first time in nearly two months.

Fear is back

The popular Bitcoin Fear & Greed Index is a metric that tracks several factors within the digital asset community to reveal momentary sentiment toward the leading cryptocurrency. Such segments include volatility of the asset, volume, social media comments, surveys, and more. The index provides results ranging from 0 (“Extreme fear”) to 100 (“Extreme greed”). Currently the metric has dropped to 34 – Territory of “Fear”.

It is worth noting that the last time the Index went to this state was October 1. Back then, bitcoin’s price tag stood at around $42,000. Throughout October, however, the cryptocurrency saw significant advances, perhaps most notable being the launch of ProShares Bitcoin Strategy ETF – the first futures-backed ETF in the United States. Shortly after, the digital asset’s USD value skyrocketed and reached an all-time high of nearly $65,000.

Other factors have contributed to the boom in bitcoin over the past two months, including assurances from the SEC and Federal Reserve that the United States will not ban cryptocurrencies.

Furthermore, the government of Russia announced a complete crackdown on cryptocurrencies (the way China did it) is not on its agenda. President Putin even noted that bitcoin and alternative coins could one day become a means of payment.

The first ten days of November were also highly successful for BTC. Last week, it hit a new all-time high of $ 69,000, while its market capitalization hit $ 1.3 trillion for the first time.

Nonetheless, the cryptocurrency industry experienced a significant correction in the past week, and bitcoin lost some serious ground. At the time of this writing, it is trading at around $ 57,000 and, as you might expect, investor sentiment has turned to “fear”.

Is It Time to ‘Buy The Dip?’

While the word “Fear” might look like a stop sign to some people willing to enter the digital asset market, it is not always the case. Many experts in the space believe that cryptocurrency being in this state or even “Extreme Fear” is actually a good option to buy.

The third-largest bitcoin whale seems to have the same opinion, and two days ago, they purchased another 1,647 BTC at a price of less than $60K. The total amount equaled nearly $100 million.

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