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Data exhibits the Bitcoin market has been caught in a state of utmost concern for the reason that fifth of May, which means this run of backside sentiment has gone on for greater than a full month now.

Bitcoin Fear And Greed Index Continues To Point At An Extremely Fearful Market

According to the most recent weekly report from Arcane Research, the crypto market is presently going by its longest run of utmost concern for the reason that COVID crash again in 2020.

The “fear and greed index” is an indicator that tells us in regards to the basic investor sentiment within the Bitcoin and wider crypto market.

The metric makes use of a numeric scale that goes from one to hundred for displaying this sentiment. When the worth of the index is lower than fifty, it means buyers are fearful in the mean time.

Related Reading | Glassnode: Bitcoin Long-Term Holders Own 90% Of Supply In Profit

On the opposite hand, values of the indicator above the brink indicate that buyers presently share a sentiment of greed.

Values in direction of the tip of the vary of under 25 and above 75 point out sentiments of extreme fear and excessive greed, respectively.

Now, here’s a chart that exhibits the pattern within the Bitcoin concern and greed index over the previous 12 months:

The worth of the metric appears to have been very low just lately | Source: Arcane Research's The Weekly Update - Week 22, 2022

As you possibly can see within the above graph, the Bitcoin concern and greed index is exhibiting a worth of 15 proper now, suggesting that the final sentiment is that of utmost concern.

These low values of the metric have now been there for greater than a month now. Such a protracted streak final occurred following the COVID crash two years in the past. Then, the run lasted for 48 consecutive days earlier than the sentiment noticed any enchancment.

Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

Historically, bottoms have tended to type during times of utmost concern, whereas tops have occurred throughout excessive greed.

Because of this, some buyers imagine the previous durations present perfect shopping for alternatives for Bitcoin, whereas the latter may very well be becoming promoting factors.

The buying and selling method that follows this concept known as contrarian investing. Warren Buffet’s well-known quote encapsulates it finest:

Be fearful when others are grasping, and grasping when others are fearful.

If this philosophy is something to go by, then the present sentiment might imply now may very well be the time to purchase Bitcoin.

At the second, it’s unclear how lengthy this streak of utmost concern will final. It may very well be as lengthy or longer than the final one, or the sentiment might quickly see an uplift.

BTC Price

At the time of writing, Bitcoin’s price floats round $30.4k, down 3% prior to now week.

Looks like the worth of BTC has jumped again above $30k | Source: BTCUSD on TradingView

Featured picture from Unsplash.com, charts from TradngView.com, Arcane Research