Low Volatility Crypto Market Supplies Surprisingly Stable State Of Fear
05 Ottobre 2022 - 09:00PM
NEWSBTC
Data shows the crypto market has remained in a state of extreme
fear recently despite the Bitcoin volatility being quite low.
Crypto Fear And Greed Index Continues To Point At “Extreme Fear” As
per the latest weekly report from Arcane Research, investors in the
cryptocurrency sector have remained extremely fearful since late
August. The “fear and greed index” is an indicator that tells us
about the current sentiment among participants in the crypto
market. The metric makes use of a numeric scale that runs from zero
to hundred for representing this sentiment. All values above 50
mark periods of greed, while those below the threshold suggest fear
among the investors. At values towards either end of the range,
that is those above 75 and below 25, occur mentalities of “extreme
greed” and “extreme fear.” Now, here is a chart that shows the
trend in the crypto fear and greed index over the last year. The
value of the metric seems to have not changed much in recent days |
Source: Arcane Research's The Weekly Update - Week 39, 2022 As you
can see in the above graph, the crypto fear and greed index has a
value of 20 at the moment, implying the market is extremely
fearful. This is a continuation of an extreme fear streak that
started more than one month ago, back during late August.
Historically, investors have usually maintained fearful sentiments
during periods of high volatility in coins such as Bitcoin, while
stretches of low volatility have accompanied times of greed.
Related Reading: What Does Puell Multiple Say About Current Bitcoin
Bear? However, while this recent run of extreme fear took place,
the price of BTC mostly stayed constant around the $19k mark. The
below graph shows how unusually low the volatility has been for the
coin recently. Looks like the Bitcoin volatility has plunged down
in the past week | Source: Arcane Research's The Weekly Update -
Week 39, 2022 The report notes that the crypto market investors
having such a rock-bottom sentiment while the BTC volatility has
also been low suggests there is an innate fear among the
participants that the worst of the bear market hasn’t passed over
yet. Related Reading: Oryen Network (ORY), Bitcoin Gold (BTG), PAX
Gold (PAXG) And Tether Gold (XAUT) Will Turn 2023 Into A Golden
Year BTC Price At the time of writing, Bitcoin’s price floats
around $20k, up 5% in the past week. Over the last month, the
crypto has gained 1% in value. The below chart shows the trend in
the price of the coin over the past five days. The value of the
crypto seems to have shot up over the last couple of days | Source:
BTCUSD on TradingView Featured image from Rudi De Meyer on
Unsplash.com, charts from TradingView.com, Arcane Research
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