Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?
May 17 2022 - 3:00PM
NEWSBTC
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
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Apr 2023 to Apr 2024