Fear’ grips Bitcoin and Altcoins as trader sentiment drops to the lowest level. According to the Fear and Greed Index, crypto traders are likely to experience cold feet in regards to the market climate, (same as the previous month) as trader sentiment gauge ‘fear’ has taken the cryptocurrency market by storm. This might present an opportunity to buy as the index suggests people are going to be put off buying at this moment in time so it could be a good time to consume more crypto.
The Fear and Greed index uses several factors to determine the sentiment gauge among traders and the market itself in order to see where the market climate is heading. The volatility of prices produces considerable shifts in the index measurement. In the last four days, the Index measurement was displayed at 72/100, implying the sentiment level was at ‘Greed’.
Currently, the index measurement changed drastically after Tesla clearly rejected Bitcoin due to environmental concerns, and Binance, a major exchange platform, received more attention from regulators. As of now, the Index measured at 26/100, a narrow border between ‘Fear’ and ‘Extreme Fear’. The Index was at a similar low point after the cross-asset crash last year in which Bitcoin prices stooped to $3,600.
Contrary to the data, according to a report by Cointelegraph, Bitcoin seems to be performing quite well, and stable despite trader liquidations and seller’s transactions. Renowned trader Scott Melker showed his support for Bitcoin, comparing the cryptocurrency to the stock market, and reassured Bitcoin’s survival this time.