October 5, 2022

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

2 min read

Following the recent decline in the cryptocurrency market, in which bitcoin has lost almost 20% of its value considering that its all-time high, the basic sentiment amongst investors has changed significantly. The Fear & & Greed Index has entered into a state of “Fear” for the very first time in nearly two months.

Fear Is Back Again

The popular Bitcoin Fear & & Greed Index is a metric that follows numerous factors within the digital possession community to expose the short-lived belief towards the leading cryptocurrency. Such sections include volatility of the asset, volume, social media comments, surveys, and more. The Index supplies outcomes varying from 0 (“Extreme Fear”) to 100 (“Extreme Greed”). Currently, the metric has dropped to 34– “Fear” territory.

Bitcoin Fear and Greed Index. Source: Alternative.me
Bitcoin Fear and Greed Index. Source: Alternative.me It is worth keeping in mind that the last time the Index went to this state was October 1. At that time, bitcoin’s cost stood at around$42,000. Throughout October, though, the cryptocurrency saw significant improvements, with perhaps the most significant one being the launch of ProShares Bitcoin Strategy ETF– the very first futures-backed ETF in the United States. Soon after, the digital possession’s USD worth skyrocketed and reached an all-time high of nearly $65,000.

Other factors aiding bitcoin’s surge in the last two months consisted of peace of mind from the SEC and the 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 program. President Putin even kept in mind that bitcoin and the alternative coins could one day become a means of payment.

The first 10 days of November were likewise extremely effective for BTC. Recently, it rose to a new all-time high of $69,000, while its market capitalization touched $1.3 trillion for the very first time.

Nonetheless, the cryptocurrency market experienced a considerable correction in the past week, and bitcoin lost some severe ground. At the moment of composing these lines, it is trading at around $57,000, and somewhat expectedly, investors’ feelings became “Fear.”

Is It Time to ‘Buy The Dip?’

While the word “Fear” may appear like a stop indication to some individuals going to go into the digital property market, it is not always the case. Numerous experts in the area believe that the cryptocurrency being in that state or perhaps “Extreme Fear” is actually an excellent purchasing choice.

The third-largest bitcoin whale seems to have the same viewpoint, and 2 days earlier, they acquired another 1,647 BTC at a rate of less than $60K. The overall quantity equated to almost $100 million.