When Will The Extended Stretch Of Extreme Fear In Crypto End?

Keshav Verma

1 year ago

3 mins read

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Data shows the crypto market almost escaped from the extreme fear territory earlier in the week, but the sentiment has once again slumped down during the last few days.

Crypto Fear And Greed Index Continues To Point At “Extreme Fear”

As per the latest weekly report from Arcane Research, the current streak of extreme fear, which happens to be the longest ever, couldn’t be broken this week.

The “fear and greed index” is an indicator that measures the general investor sentiment in the crypto market.

The metric uses a numeric scale that runs from zero to hundred for displaying this sentiment. All values of the index greater than fifty imply greed, while those below the threshold suggest fear.

Values of more than 75 and less than 25 towards each end of the range indicate sentiments of “extreme greed” and “extreme fear,” respectively.

Now, here is a chart that shows the trend in the crypto fear and greed index over the last year:

The value of the indicator seems to have slumped back down after a rise | Source: Arcane Research's The Weekly Update - Week 27, 2022

As you can see in the above graph, the crypto fear and greed had a value of 16 two days ago, when the report came out. According to alternative.me, the value is 18 today, slightly more than that.

Nonetheless, both values are firmly inside the extreme fear territory, which means the current record streak of bottom sentiment has continued for 70 days now.

During the past week, the indicator’s value did look to be catching some upwards momentum as it briefly climbed to 24 on the weekend, which is just at the edge of the extreme fear region.

However, this improvement in the sentiment didn’t last too long and the index once again dropped back down, before the longest extreme fear run in the history of the crypto market could be broken.

Though, the report notes that the index may be overstating the fearfulness due to the special conditions right now. The fear and greed index’s value depends on two major factors, the volatility and the trading volume. Binance removing trading fees from its platform has certainly influenced these two metric’s values and hence the index as well.

For the crypto market to escape from this stretch of extreme fear, positive news and price action will be needed to make investors more optimistic.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.7k, down 3% in the past week.

Looks like the value of the crypto has declined over the last few days | Source: BTCUSD on TradingView

Featured image from Pierre Borthiry on Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

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

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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