Data shows the crypto market has been fearful for 171 days, will the October streak last and reach 200 days?
Crypto Fear and Greed Index indicates an extremely fearful market
According to the latest weekly report from Arcane Research, the crypto market has continued to show fear sentiment since April this year.
The Fear and Greed Index is an indicator that measures the overall sentiment among investors in the cryptocurrency market.
To represent sentiment, the metric uses a numeric scale ranging from zero to one hundred. Anything above 50 in the index means the market is greedy, while readings below the threshold indicate fearful investors.
Within these major sentiments are two zones that have historically been particularly important to the prices of coins like bitcoin. These are the Extreme Greed and Extreme Fear regions, which occur above 75 and below 25, respectively.
The relevance of the extreme moods is that in the former type of periods there have usually been highs, while in the latter lows have been formed.
Now here is a chart showing the trend of the crypto fear and greed index over the last year:
The value of the metric seems to have decreased in the past few days | Source: The Weekly Update from Arcane Research – Week 37, 2022
As you can see in the chart above, the Crypto Fear and Greed Index recently saw a small spike when the Ethereum merger took place, but as soon as investors realized it was a sell-the-news event, the Mood strong again .
Two days ago when the report came out, the indicator had a reading of 23, indicating an extremely fearful mentality. It hasn’t moved much since then as today’s value is still 22.
The crypto market has been in a state of fear since the month of April, making it a continuous run of this mood for 171 days now.
Back then, during the recovery rally in August, the indicator came closest to fleeing this region, ending the longest period of fear in the index’s history. However, before investors could unleash their greed, the rally ended and sentiment immediately plummeted.
It is currently unclear when the run will finally end. If this continues and runs through October, crypto investors would have witnessed 200 days of fear.
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.2k, down 5% over the past seven days. Over the past month, the crypto has lost 10% in value.
It looks like the price of the coin has been moving sideways for most of the past few days | Source: BTCUSD on TradingView Featured image from Thought Catalog on Unsplash.com, Charts by TradingView.com, Arcane Research
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