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Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets
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Breaking News: FTX Recovery Trust Set To Disburse $1.6 Billion By Month-End, FTT Price Skyrockets

Bitcoin Market Plunges Into Extreme Fear, How Scary Does It Get?

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Bitcoin

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Data shows the Bitcoin market sentiment has remained deep in extreme fear this week as broader financial markets also get fearful.

Bitcoin Fear And Greed Index Shows A Value Of 12 This Week

As per the latest weekly report from Arcane Research, the wider financial market is at its highest level of fear since the COVID crash in 2020.

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

The metric displays this sentiment using a numeric scale that runs from one to hundred. All values of the index above “50” imply a sentiment of greed, while all those below the cutoff indicate a fearful market.

When the indicator has values towards the end of the range, that is, above 75 or below 25, the market is in a state of extreme greed or extreme fear.

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.

Similarly, tops have formed in the past while the market has gone through extreme greed so such times may be ideal for selling.

Related Reading | Bitcoin Whale Breaks 8 Year Long Silence With $30 Million Worth Of BTC Transfer

Contrarian investing is a trading technique that follows this idea. To quote Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”

Now, here is a chart that shows the trend in the Bitcoin fear and greed index over the past year:
Bitcoin Fear And Greed Index

Looks like the sentiment in the market has plummeted recently | Source: Arcane Research's The Weekly Update - Week 19, 2022

As you can see in the above graph, the Bitcoin fear and greed index has a value of 12 at the moment, indicating a sentiment 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.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

The market has been observing the highest extreme fear values since the crash back in 2022 due to the onset of COVID-19.

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 Price

At the time of writing, Bitcoin’s price floats around $30.4k, down 3% in the last seven days. Over the past month, the crypto has lost 24% in value.

The below chart shows the trend in the price of the coin over the last five days.

Bitcoin Price Chart

It seems like the price of the coin has been moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from 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.

Read more

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