According to the data, the crypto market was already scared for 171 days, will the streak continue in October and reach 200 days?
Crypto Fear and Greed index points on a very scary market
According to the latest weekly report from Arcane Research, the crypto market has continued to show a sense of fear since April this year.
The “fear and greed index” is an indicator that measures the overall sentiment among investors in the cryptocurrency market.
To represent emotion, the scale uses a numerical scale ranging from zero to one hundred. All index values above 50 indicate that the market is greedy, while those below the threshold indicate fearful investors.
Within these core sentiments, there are two zones that have historically been particularly important to the value of coins like Bitcoin. These are the “extreme greed” and “extreme fear” regions and occur at values above 75 and below 25.
The peaks of the relevance of extreme emotions usually occur in the former type of periods, and the bottom occurs in the latter.
Now, here’s a chart showing the trend in the crypto fear and greed index over the past year.
The value of the metric seems to have gone down in recent days | Source: Arcane Research's The Weekly Update - Week 37, 2022
As shown in the graph above, the crypto fear and greed index saw a slight spike in the recent Ethereum merger, but when investors realized that it was a news selling event, the sentiment fell sharply. .
Two days ago, when the report was released, the indicator had a value of 23, which shows a very scary attitude. Since then, it hasn’t changed much as today’s price is still 22.
The crypto market has been in a frenzy since April, making it a 171-day streak of bullishness.
During a rally in August, the index came very close to breaking out of this range and ending the longest streak of fear in the index’s history. However, the rally ended before investors could embrace the greed and the sentiment immediately fell.
Currently, it’s unclear when the run will finally end. If it continues and lasts until October, crypto investors would be looking at a 200-day scare.
At the time of writing, the price of Bitcoin is hovering around $19.2k, down 5% over the past seven days. In the last month, the price of crypto lost 10%.
Looks like the price of the coin has been mostly moving sideways in the last few days | Source: BTCUSD on TradingView
Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research