The Year Of Crypto Market Fear

The data shows that 2022 is the year to be afraid in crypto markets. This has occurred because investors continue to show poor sentiment over the past eleven months.

Crypto Fear And Greed Index Currently Sits In “Extreme Fear” Territory

The latest Weekly Report from Arcane Research shows that the cryptocurrency market will soon have completed one year of fearful feelings.

The relevant indicator here is the “fear and greed index,” which tells us about the general sentiment among investors in the crypto market.

For this purpose, the metric employs a numerical scale from zero to one hundred. Values greater than fifty signify a greedy disposition, while values lower than the threshold indicate fearfulness.

Outside of these two sentiments, there also exist two subset sentiments, the “extreme fear” and the “extreme greed.” These occur at values towards the ends of the range. The former includes those over 75 and the latter, respectively, while the latter requires those under 25.

Here’s a chart showing the trends in crypto fear and greed over the last year.

Crypto Fear And Greed Index

The recent week has seen the value of this metric move sideways. Source: Arcane Research's The Weekly update - Week 41 2022| Source: Arcane Research's The Weekly Update - Week 41, 2022

You can see that this graph shows the current fear spell began back in late November of last year when the bull market ended.

Except for a few fluctuations in greed, the value of the crypto fear-greed index has been below 50 since then.

The metric spent much of this time in extreme fear territory. This means that investors in 2022 have experienced a very low bottom.

22 is the latest value for the indicator, meaning investors are very fearful right now. This isn’t much different from the last week, which observed a value of 24.

This graph shows where the market is right now in relation to previous weeks and months.

Crypto Extreme Fear

The fear-and-greed index points to extreme fear now. Source: Arcane Research’s The Weekly Update Week 41, 2022| Source: Arcane Research's The Weekly Update - Week 41, 2022

BTC Prices

At the time of writing, Bitcoin’s price floats around $19.2k, up 1% in the last seven days. In the past month, crypto lost 1%.

The chart below shows how the currency’s price has changed over the past five days.

Bitcoin Crypto Price Chart

It seems like crypto's value has remained in a stable range for the past few days. Source: TradingView.| Source: BTCUSD on TradingView
Hans-Jurgen Mager featured image on Charts from Arcane Research

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