The recent cryptocurrency market crash erased some of the enthusiasm among investors, many of whom expected a renewed bull run and hopped on the bandwagon en masse in the past few months.
The popular Bitcoin Fear and Greed Index entered “Fear” territory on August 18 (the day BTC nosedived to nearly $25,000), remaining in that zone ever since. The last time the indicator flashed “Fear” for four consecutive days was in January when the primary digital asset was worth less than $20K.
- It is safe to assume that the overall revival of the cryptocurrency market since the beginning of the year, more specifically bitcoin’s price increase, has been the most crucial factor why the BTC Fear and Greed Index has stayed in either “Neutral” or “Greed” territory in the past half a year.
- And while many believed that a new bull was just behind the corner (considering the positive news around BlackRock’s filing to launch a spot BTC ETF in the USA and other developments), the market suffered a severe correction.
- Bitcoin dipped to a two-month low of $25,300 on several exchanges, including Coinbase. It recovered some of the losses in the following days and currently trades at around $26,000.
- Somewhat expectedly, the BTC Fear and Greed Index flashed “Fear” on August 18, unable to climb back to “Neutral” or “Greed” in the next three days, representing the predominantly pessimistic sentiment coming from investors.
BTC Fear and Greed, Source: alternative.me - The last time the indicator stayed in that zone for four consecutive days was in mid-January this year, shortly before bitcoin started a mini-bull run and eventually surpassed the $30K level.
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