Data showed the crypto market almost escaped fear territory earlier in the week, but sentiment has declined again over the past few days.
Crypto Fear and Greed Index Continues to Point to “Extreme Fear”
As per the latest weekly report from Arcane Researchthe current streak of extreme fear, which happens to be the longest ever, could not be broken this week.
The “index of fear and greed”Is an indicator that measures general investor sentiment in the crypto market.
The metric uses a numerical scale from zero to one hundred to display this sentiment. All index values above fifty indicate greed, whereas those below that threshold indicate fear.
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Values greater than 75 and less than 25 at each end of the range indicate sentiment ”extreme greed“and” very afraid, respectively.
Now, here is a chart showing the trends in the crypto fear and greed index over the past year:
The value of the indicator seems to have slumped back down after a rise | Source: Arcane Research's The Weekly Update - Week 27, 2022
As you can see in the chart above, crypto fear and greed had a value of 16 two days ago, when the report came out. according to alternative.meworth 18 today, slightly more than that.
However, both values are in very fearful territory, meaning the current record of lowest sentiment continues for 70 days now.
Over the past week, the value of the indicator appears to have gained upward momentum as it briefly rose to 24 over the weekend, which is on the edge of a very scared region.
However, this increase in sentiment did not last long and the index went down again, before the longest fear in the history of the crypto market could be broken.
Though, the report notes that the index may be beyond fears due to the current special circumstances. The value of the fear and greed index depends on two main factors, volatility and trading volume. Binance removing the trading fee from the platform will certainly have an impact on the value of both the metric as well as the index.
For the crypto market to escape this overwhelming fear, positive news and price action will be needed to make investors more optimistic.
Price BTC Kab
At the time of writing, buy Bitcoin floats around $ 19.7k, down 3% on last week.
Looks like the value of the crypto has declined over the last few days | Source: BTCUSD on TradingView
Featured image from Pierre Borthiry on Unsplash.com, charts from TradingView.com, Arcane Research