Bitcoin

Bitcoin Is Currently In The Longest Period Of “Extreme Fear” Ever

The price crash of Bitcoin (BTC) since dropping to $17,600 last month has passed, but the sentiment remains negative. Now, a classic crypto market mood gauge is showing how long and hard the average investor has suffered.

Bitcoin Is Currently In The Longest Period Of “Extreme Fear” Ever 4

While the crypto market sentiment was already bleak before the start of 2022, the subsequent drop in Bitcoin and other cryptocurrencies has created ever more gloom.

This has now been quantified by the Crypto Fear & Greed Index, an index that considers multiple dimensions to create an overall score on market sentiment.

As of July 16, Fear & Greed has spent over 70 days at its lowest level – “Extreme Fear” – marking a new bearish record.

Crypto Fear & Greed Index as of July 16. Source: alternative.me

The index includes five states “Extreme Fear”, “Fear”, “Neutral”, “Greedy” and “Extreme Greed”. The last market sentiment was more upbeat than it is now was on May 5 – the day before Terra (LUNA) collapsed.

Crypto Fear & Greed Index. Source: alternative.me

Commenting on the data, Philip Swift, creator of online chain analytics platform LookIntoBitcoin, noted that this period of “Extreme Fear” extends beyond those surrounding the 2018 Bitcoin bear market and the market crash in March 2020.

The year 2022, despite its bearish periods, is not without its ups and downs. The last time the Index was in the “Greed” or “Extreme Greed” zone – which tends to indicate an overheated market – was in March of this year.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.