Extreme Fear Persists as Bitcoin Struggles to Recover

The cryptocurrency market sentiment is in “extreme fear” territory due to Bitcoin struggling to recover, according to the Crypto Fear & Greed index. It considers a variety of factors, including volatility, social media posts, and trading volume, to evaluate how investors and traders feel about the current situation of the market.

When the index falls below 50, it enters the fear area. It most recently showed a score of 25, indicating “extreme fear.” On a daily basis, the index measures the sentiments of cryptocurrency traders.

Within barely two weeks, market sentiment has shifted dramatically. After the flagship cryptocurrency reached a new 2022 high of $48,234, the index flashed “greed” for the first time in four months in late March. The recovery turned out to be a flash in the pan. Earlier this week, Bitcoin fell below $40,000 for the first time since March 16 amid concerns that the Federal Reserve of the United States has launched an even more aggressive monetary tightening policy to fight rising inflation.

No matter how low Bitcoin falls, keep in mind that it can always fall lower in a “max pain” scenario. Several times, the index has fallen below 10 following a severe selloff.

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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