2022: The Year Extreme Fear Took Over The Crypto Market
September 28 2022 - 3:00PM
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The year 2022 so far has seen the crypto market spend most of its
time in the fear territory, with a large chunk of it being
especially deep into extreme fear. Crypto Fear And Greed Index
Continues To Point At “Extreme Fear” According to the latest weekly
report from Arcane Research, the market has continued to be fearful
without any breaks for 178 days now. The “fear and greed index” is
an indicator that tells us about the general sentiment among
investors in the crypto sector. The metric uses a numeric scale
that runs from zero to hundred for representing this sentiment. All
values above 50 signify that investors are greedy right now, while
those below the threshold suggest a fearful market. Values of more
than 75 and less than 25 towards the ends of the range imply
sentiments of “extreme greed” and “extreme fear,” respectively.
Now, here is a chart that shows the trend in the crypto fear and
greed index over the past year: The value of the metric remains
quite low | Source: Arcane Research's The Weekly Update - Week 38,
2022 As you can see in the above graph, the crypto fear and greed
index has continued to be at a low value in recent weeks. The
current value of the indicator is 20, which means the market
sentiment is that of extreme fear at the moment. Related Reading:
Bitcoin 90-Day CDD Hits All-Time Low, What Does It Say About
Market? In total, the investors have been fearful for 178
consecutive days now, the longest streak since the metric was
created back in 2018. For a great chunk of this time, the crypto
market has actually had an extremely fearful sentiment. Prior to
the relief rally in prices of coins like Bitcoin back during
August, the sector saw a record extreme fear run. Overall during
the year 2022, the indicator has spent very few days in the greed
territory. Extreme fear has taken over the market for much of the
time, and when there hasn’t been bottom sentiment, there has still
been fear looming around the investors’ minds. Related Reading:
Bitcoin (BTC) Price To Reach In Millions By 2030, Says Analyst
Historically, the relevance of extreme fear territory has been that
cryptos like Bitcoin have generally observed bottoms during
stretches of such deep sentiment. The report notes that while
accumulating in these periods can be a good strategy, investors
should be aware that the fearful sentiment can go on for much
longer still. BTC Price At the time of writing, Bitcoin’s price
floats around $19k, down 1% in the past week. Looks like the value
of the crypto has already come down from the surge a couple of days
ago | Source: BTCUSD on TradingView Featured image from Natarajan
sethuramalingam on Unsplash.com, charts from TradingView.com,
Arcane Research
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