Data shows that the crypto market has slipped back into a state of extreme fear after showing some signs of improvement over the past few months.
Crypto Fear and Greed Index says the market is extremely fearful at the moment
According to Arcane Research’s latest weekly report, the market has been observing an anxious mood for five straight months now.
The Fear and Greed Index is an indicator that tells us something about the general mood among investors in the crypto market.
The metric uses a numeric scale ranging from zero to one hundred to indicate this sentiment. Any reading above 50 means investors are greedy at the moment, while reading below the threshold indicates a fearful market.
Ending range scores greater than 75 and less than 25 represent feelings of “extreme greed” and “extreme fear,” respectively.
Historically, highs in coins like bitcoin have formed while investors have been going through extreme greed, while lows have occurred in times of extreme fear.
Now here is a chart showing the trend of the crypto fear and greed index over the past year:
It looks like the value of the metric has been going down for the past few days | Source: The Weekly Update from Arcane Research – Week 35, 2022
As you can see in the chart above, the Crypto Fear and Greed Index had rallied in July and August after a long period of extreme fear in the market.
The indicator nearly hit greed levels during this optimism, but as the recent Bitcoin rally faded, so did investor mentality.
Sentiment quickly relapsed deep into fear and the decline has now continued, bringing the index down to just 22. This means the industry is now experiencing extreme fear again.
The report notes that sentiment has remained in the fearful region since April, making it a streak of five straight months of fear. This stretch of fear has been the longest of its kind since the Fear and Greed Index was conceived in February 2018.
BTC price
At the time of writing, Bitcoin’s price is hovering around $18.7k, down 8% over the past seven days. Over the past month, the crypto has lost 18% in value.
The chart below shows the evolution of the coin’s price over the last five days.
The crypto’s value appears to have fallen below $19,000 for the first time in more than two months | Source: BTCUSD on TradingView Featured image by Hans-Jurgen Mager on Unsplash.com, Charts by TradingView.com, Arcane Research
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