Why Crypto Market Fear Mirrors Lull In Volatility

Data shows the crypto market fear has been mirroring the volatility in the market recently, as the latest burst in the price of Bitcoin has improved investor sentiment. Crypto Fear And Greed Index Escapes Out Of “Extreme Fear” Zone The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the cryptocurrency market. The metric uses a numeric scale that runs from zero to hundred for displaying this sentiment. All values above fifty signify greed in the market, while those below the threshold suggest fear amongst the investors. Besides these two, there also exist two special sentiments called the “extreme fear” and the “extreme greed.” These take place at values lower than 25 and greater than 75, respectively. The significance of these zones is that coins like Bitcoin have historically observed bottom (extreme fear) and top (extreme greed) formations during such periods. Now, here is a chart from this week’s Arcane Research report that shows the trend in the crypto fear and greed index over the past year: Looks like the value of the metric has been mostly flat in recent weeks | Source: Arcane Research's The Weekly Update - Week 42, 2022 As you can see in the above graph, the crypto fear and greed index had been moving sideways in the 20 to 25 range for over a month when the report came out, which was two days ago. Related Read...