Bitcoin Sentiment Worst Since 2022 Bear As Price Crash Continues

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. Data shows the Bitcoin Fear & Greed Index has continued to decline recently, with its value now hitting the lowest level since the 2022 bear market. Bitcoin Fear & Greed Index Is Deep Inside Extreme Fear Zone The “ Fear & Greed Index ” refers to an indicator created by Alternative that tracks the average sentiment present among traders in the Bitcoin and wider cryptocurrency markets. Related Reading Bitcoin Realized Loss Nears $900 Million, Highest Since FTX Crash 5 hours ago The index determines the trader mentality using the data of the following five factors: trading volume, volatility, market cap dominance, social media sentiment, and Google Trends. To represent the sentiment, it makes use of a numerical scale running from zero to hundred. When the value of the indicator is above 53, it means the investors as a whole share a sentiment of greed. On the other hand, the metric being under 47 suggests the dominance of fear. Naturally, the index lying between these two cutoffs implies a neutral mentality is shared by the majority. Besides these three main zones, there are also two ‘extreme’ regions called the extreme fear (25 and below) and extreme greed (above 75). After the recent market downturn, sentiment among cryptocurrency traders has deteriorated into the former of the two. Here is how the latest value of the Bitcoin Fear & Greed Index looks: The value of the metric appears to be 9 | Source: Alternative As displayed above, the Bitcoin Fear & Greed Index has a value of 9 at the moment, which is a pretty low level. In fact, this level is so deep into extreme fear that this is the first time in the current cycle that the metric has reached it. Below is a chart that shows how the current level of extreme fear lines up against the indicator’s historical data. The trend in the BTC Fear & Greed Index over the past year | Source: Alternative From the graph, it’s visible that the last time the Bitcoin Fear & Greed Index reached a value this low was back in June 2022, right in the middle of that year’s bear market . The latest drop in the metric to a single-digit value is a result of the price drawdown that BTC and other cryptocurrencies have faced since the last week of January. This decline in sentiment, however, may not be such a bad thing for the sector, if history is to go by. Often, an extremely fearful market facilitates bottom formations as underwater investors capitulate and resolute hands pick up their coins. During a bear market, however, the Fear & Greed Index is usually inside the zone for a notable duration before a bottom is reached. Related Reading XRP Social Sentiment Still Bullish While Bitcoin Mood Sours 21 hours ago If the recent shift in the sector reflects a transition to a bear market, then it only remains to be seen how long mood will be in extreme fear before relief arrives for Bitcoin and company. BTC Price At the time of writing, Bitcoin is floating around $67,100, down 19% over the last seven days. Looks like the price of the coin has plummeted | Source: BTCUSDT on TradingView Featured image from Dall-E, chart from TradingView.com