As a seasoned crypto investor, I’ve seen my fair share of market ups and downs. The recent Bitcoin and crypto market crash has left me feeling uneasy, with the Fear & Greed Index plummeting to 28, a level not seen since the FTX exchange collapse in November 2022.
The recent downturn in the Bitcoin and cryptocurrency market has significantly diminished optimistic feelings, giving way to bearish dominance. Over the past month, the Fear & Greed Index has been on a consistent downward trend, reaching new lows for the year. The price of Bitcoin dropping to $53,000 last week has caused the Crypto Fear & Greed Index to hit levels not seen since the collapse of the FTX crypto exchange in November 2022.
Crypto Fear & Greed Index Crashes To 28
The Crypto Fear and Greed Index currently stands at a fearful 28 out of 100, indicating caution among investors towards cryptocurrency markets in 2024. This shift from greed, which prevailed for several months prior, suggests a hesitance to invest due to anticipated price drops.
As a researcher studying the crypto market, I’d like to provide some context for the current sentiment. The last time the Crypto Fear & Greed Index dipped as low as 28 was back in November 2022. This reading was seen after the significant FTX crash occurred. At that time, Bitcoin’s price touched a bottom of around $16,000.
Over the past few occurrences, the Index has successfully maintained a score above 30, preventing it from dipping into Extreme Fear. Nevertheless, there are indications of intense bearishness in the market that could potentially force it to enter this territory for the first time in two years.
Bitcoin Recovery Could Be Imminent
As an analyst, I’ve observed that when the Crypto Fear & Greed Index drops to a score of 28 and settles in the Fear territory, it tends to discourage investors due to the perceived market instability. However, this trend has historically signaled potential buying opportunities. In fact, extended periods of Fear have often marked the end of significant downturns in the crypto market.
In November 2022, Bitcoin’s price took a nosedive, reaching around $16,000. This significant drop caused the Crypto Fear & Greed Index to fall below 28 points. Looking back, this event marked the market’s lowest point. For a brief period afterward, there was some volatility with minimal price movement. However, starting in those following months, the cryptocurrency market started its recovery, initiating yet another bull run.
If I found myself at the bottom of the Bitcoin market in November 2022, I would be thrilled to witness a price surge of over 250% by early 2024, reaching yet another record high. Should this positive trend persist, I would eagerly anticipate another round of accumulation and potential price rebound, paving the way towards another run-up to an unprecedented new all-time high.
Currently, Bitcoin’s price is bouncing back slightly after hitting a rough patch, now trading at approximately $57,200. Although this represents a 8.8% decrease over the past week, it offers some relief following the weekend slump that took the price under $54,000.
Read More
- USD ZAR PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- USD PHP PREDICTION
- USD COP PREDICTION
- OPUL PREDICTION. OPUL cryptocurrency
- LED PREDICTION. LED cryptocurrency
- USD PEN PREDICTION
2024-07-08 17:11