2025-02-03 21:30:59 by NewsBTC

Data shows the sentiment among Bitcoin traders has plunged into the fear territory following the crash in the cryptocurrency’s price. Bitcoin Fear & Greed Index Has Plummeted During The Past Day The “Fear & Greed Index” refers to an indicator devised by Alternative that tells us about the average sentiment that’s currently present in the Bitcoin and wider cryptocurrency markets. This metric makes use of a numerical scale that runs from zero to hundred for representing the market mentality. All values above the 53 mark correlate to the investors sharing a sentiment of greed, while those under 47 suggest the presence of fear in the sector. The region in-between these cutoffs corresponds to a net neutral sentiment. Besides these three main regions, there are also two special zones known as the extreme fear and extreme greed. The former occurs below 25 and the latter above 75. Now, here is how the latest market sentiment has looked according to the Bitcoin Fear & Greed Index: The index seems to have a value of 44 | Source: AlternativeAs is visible above, the indicator has a value of 44, which suggests the traders in the sector are being fearful at the moment. This is a drastic change from how the market has been recently, as the below chart displays. Looks like the value of the indicator has gone through a sharp plunge in recent days | Source: AlternativeOn the 31st of last month, the Bitcoin Fear & Greed Index had a value of 76, meaning that the market sentiment was inside the extreme greed territory. Just three days later, the trader’s opinion has completely flipped. The rapid deterioration in sentiment is a result of the bearish price action that the asset has witnessed this month, which has culminated in a crash during the past day. If history is to go by, though, the skepticism that has developed among the investors may actually be a positive sign for BTC’s price. Bitcoin and other digital assets often tend to move in a direction that’s opposite to what the crowd is expecting. The probability of such a contrary move taking place only rises the stronger the investors’ belief becomes. Extreme greed and extreme fear are where this likelihood is the strongest, so major tops and bottoms have historically formed when the Fear & Greed Index has been in these regions. The top last month, for instance, also occurred alongside extreme greed. Traders who follow an investing philosophy called contrarian trading exploit this fact to time their moves. Warren Buffet‘s famous quote sums up the idea: “Be fearful when others are greedy, and greedy when others are fearful.” While the market sentiment hasn’t quite worsened into extreme fear yet, the fact that the metric is at its lowest value since October could still be a sign that a contrarian trader may be looking for. It now remains to be seen whether the current level of fear would be enough for Bitcoin to bottom out, or if a further drop will happen first. BTC Price At the time of writing, Bitcoin is floating around $95,200, down around 4% in the last 24 hours. The price of the asset has been going downhill over the past few days | Source: BTCUSDT on TradingViewFeatured image from Dall-E, Alternative.me, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. 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