At present, the Bitcoin market is passing through a really volatile period. In fact, this volatile nature has been ever present since the first days of Bitcoin. However, this has been the case with every other cryptocurrency. Therefore, long-term investment has never been a wise option for investors. In fact, most investors quickly sell off their assets as soon as the market shows a downward graph. They do this out of fear of loss.
There are various indicators that point to specific trends in the Bitcoin market. Many of these indicators generally represent the sentiment and mindset of the investors. The “fear and greed index” is such an indicator. In fact, a recent report from Arcane Research has shown an exciting trend in the “fear and greed index”. If you are interested in the report, this article is the perfect stop for you. Therefore, keep reading this article.
The Fear And Greed Index
Arcane Research recently published a report on the Bitcoin market. The report clearly states that the Bitcoin fear and greed index has risen to a new height after April 2022. In fact, this index is an indicator that shows the type of general sentiment running among the investors in the market.
This particular index uses a numeric scale having a range between zero and a hundred. Any value below 50 on this scale indicates “fear”. On the other hand, anything above fifty indicates “greed”. In addition, values under 25 are taken as indicating “extreme fear” and anything above 75 is interpreted as “extreme greed”.
In fact, the graph published by Arcane Research shows that Bitcoin fear and greed index went on a long stretch of extreme fear between April and July. This is the longest extreme fear run in the history of Cryptocurrency. From the end of June however, the graph started improving. Finally, in mid-July, the Bitcoin market recovered from “extreme fear”.However, it is still within the “fear” zone. The present index stands at 42. Therefore, the value is slowly entering the realm of greed. In fact, an analysis of this trend shows that the investors are still in doubt regarding the progress of the Bitcoin market.
The Bitcoin market has always been a volatile place for investors. In fact, the recent “fear and greed index” also points to that nature. Now it will be interesting to see, where the index finally takes us.