The data shows that the Bitcoin market has been in deep fear throughout this week, even though other financial markets are also becoming fearful.
Bitcoin Fear And Greed Index Has A Week-Weekly Value of 12
According to the Arcane Research weekly report, fear in the financial markets is high since 2020’s COVID crash.
The “fear and greed index” is an indicator that tells us about the general market sentiment among Bitcoin investors right now.
This metric measures sentiment by using a numerical scale that ranges from one to 100. All values of the index above “50” imply a sentiment of greed, while all those below the cutoff indicate a fearful market.
The market may be in extreme greed, fear, or when the indicator’s values are near the ends of their range, i.e. above 75 and below 25 respectively.
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.
Similar to the above, tops formed during extreme market greed in the past. These times might be great for selling.
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This idea is followed by contrarian investing. To quote Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”
Here’s a chart showing the Bitcoin fear-and-greed index trend over the last year.
It seems like sentiment has dropped in the stock market recently. Source: Arcane Research's The Weekly update - Week 19, 2022| Source: Arcane Research's The Weekly Update - Week 19, 2022
The graph above shows that the Bitcoin fear and greed Index has an index value of 12, which indicates a feeling 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.
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Due to COVID-19, the market has seen the most extreme fear since 2022’s crash.
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 Prices
At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the last seven days. In the last month, crypto lost 24%.
The chart below shows how the currency’s price has changed over the course of five days.
There seems to be a sideways movement in the cryptocurrency's price over the last few days. Source: BitcoinUSD on TradingView| Source: BTCUSD on TradingView
Unsplash.com featured image, Charts from TradingView.com and Arcane Research charts