The cryptocurrency market’s Fear and Greed Index remains mired in ‘extreme fear’ territory, registering a 10, despite Bitcoin trading 15% above its February low of around $60,000. The index hit a multi-year low of 5 during that period but has not recovered alongside the price. The latest daily decline coincides with BTC briefly dropping toward $68,000 from over $70,000, with investor sentiment dominated by fear or extreme fear for roughly two months.
The cryptocurrency markets have been dominated by fear for roughly two months, as shown by a popular sentiment metric. The Fear and Greed Index declined again in the past day as Bitcoin‘s price dipped toward $68,000.
This index analyzes volatility, market momentum, social media, and other data to gauge investor sentiment. It ranges from 0, indicating extreme fear, to 100, for extreme greed.
The metric peaked over 60 in January when bitcoin aimed at $100,000 according to data. It later plunged to a multi-year low of 5 in early- and mid-February when the cryptocurrency crashed to a 1.5-year low.
Bitcoin now trades well above that February bottom, even though BTC is far from its February bottom. However, the index remains deep within ‘extreme fear’ territory with a current figure of 10.
The latest drop coincided with the asset’s price slip in the past 12 hours. Bitcoin traded above $70,000 on Saturday before dropping toward $68,000.
The overall market state remains fragile at best according to the assessment, which is why investors continue to be gripped by fear. History has shown that when fear dominates the market for so long, a reversal has followed.
The cryptocurrency tends to perform in the opposite manner of what the crowd expects from it as stated. This is a narrative that has proven over the past decade or so.
