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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Why Crypto Market Fear Mirrors Lull In Volatility

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 10:07 am
3 mins read
Crypto Market Bitcoin

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Data shows the crypto market fear has been mirroring the volatility in the market recently, as the latest burst in the price of Bitcoin has improved investor sentiment.

Crypto Fear And Greed Index Escapes Out Of “Extreme Fear” Zone

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

The metric uses a numeric scale that runs from zero to hundred for displaying this sentiment. All values above fifty signify greed in the market, while those below the threshold suggest fear amongst the investors.

Besides these two, there also exist two special sentiments called the “extreme fear” and the “extreme greed.” These take place at values lower than 25 and greater than 75, respectively.

The significance of these zones is that coins like Bitcoin have historically observed bottom (extreme fear) and top (extreme greed) formations during such periods.

Now, here is a chart from this week’s Arcane Research report that shows the trend in the crypto fear and greed index over the past year:

Crypto Fear And Greed Index

Looks like the value of the metric has been mostly flat in recent weeks | Source: Arcane Research's The Weekly Update - Week 42, 2022

As you can see in the above graph, the crypto fear and greed index had been moving sideways in the 20 to 25 range for over a month when the report came out, which was two days ago.

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Is Bitcoin Rise Above $20k Sustainable? Here’s What On-Chain Data Says

1 year ago

During this period of stagnation, the volatility in the market was pretty low as Bitcoin and others had all been consolidating hard.

In the last couple of days, however, this has clearly changed as BTC’s price has shot up. As a result of this fresh volatility, this is how the fear and greed index’s value looks like today:

Crypto Fear

The value of the metric seems to be 32 at the moment | Source: Alternative

The crypto market sentiment has improved in the last two days, exiting the extreme fear zone, but still finding itself inside fear.

The investor mentality mirroring the volatility isn’t a surprise, as the two are related. The index also accounts for this, as 25% of its value depends on the volatility metric.

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Big Day For Bitcoin As Investors Eye ECB And US GDP Numbers

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The crypto market has been inside the fear zone for almost a year now. If it remains in this area for two more weeks, investors will have seen one full year of fear.

BTC Price

At the time of writing, Bitcoin’s price floats around $20.5k, up 7% in the last week.

Bitcoin Crypto Price Chart

The BTC price has surged up over the last couple of days | Source: BTCUSD on TradingView
Featured image from Art Rachen on Unsplash.com, charts from TradingView.com, Arcane Research
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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