Will October Bring Fearfulness To Crypto For 200 Straight Days?

The data shows that the crypto market is fearful since 171 days. Will this streak continue into October, and get to 200 days?

Crypto Fear And Greed Index Points To An Extremely Fearful Stock Market

According to the most recent weekly report by Arcane Research the fear-stricken crypto market sentiment has continued since April.

The “fear and greed index” is an indicator that measures the general sentiment among investors in the cryptocurrency market.

The metric uses a numeric scale from 0 to 100 in order to represent sentiment. The index’s values greater than 50 indicate that investors are greedy. Values below this threshold signify fearful investors.

These sentiments are the two areas that historically have been most important to Bitcoin’s price. These are the “extreme greed” and “extreme fear” regions and they occur at values greater than 75 and below 25, respectively.

It is important to note that extreme feelings are a result of tops forming in former periods and bottoms forming in latter.

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

Crypto Fear And Greed Index

The recent decline in value for the metric is apparent. Source: Arcane Research’s The Weekly Update Week 37, 2022| Source: Arcane Research's The Weekly Update - Week 37, 2022

The graph above shows that crypto fear and greed recently saw a slight surge when the Ethereum merger was announced. However, once investors realized this was an event of sell-the news, sentiment plummeted sharply.

When the report was published two days ago, it had an indicator value of 23. That would have indicated a fearful mind. Since then, it hasn’t budged much as today’s value is still 22.

Since April, the crypto market has experienced fear. This is a constant run of this sentiment for 171 consecutive days.

The relief rally of August was the time when the indicator got the closest to leaving this area and ended the longest run of fear ever recorded in its history. Investors were unable to embrace greed and the rally was ended.

Currently, it’s unclear when the run would finally come to an end. It would be 200 days without crypto investors if it continues to run through October.

BTC Prices

At the time of writing, Bitcoin’s price floats around $19.2k, down 5% in the last seven days. In the past month, crypto lost 10%.

Bitcoin Crypto Price Chart

The price of Bitcoin seems to have been moving sideways over the last few days. Source: BTCUSD on tradingView| Source: BTCUSD on TradingView
Featured Image from Thought Catalog, Unsplash.com. Charts taken from TradingView.com. Arcane Research.

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