The crypto market remains in deep fear as Bitcoin continues to struggle

Data shows that the crypto market has been deep in fear recently as the price of Bitcoin has struggled, but sentiment is still not within extreme fear.

The Crypto Fear And Greed Index shows that investors are scared right now

According to the latest weekly report from Arcane Research, crypto market sentiment has held steady in deep fear territory for the past week.

The “Fear and Greed Index” is an indicator that tells us about the general sentiment among investors in the crypto market.

The metric uses a numerical scale that moves from zero to one hundred to represent this sentiment. Any values ​​above 50 indicate a greedy market, while those below the mark suggest that investors are fearful.

The values ​​of the indicator towards the end of the interval indicate feelings of “extreme greed” (more than 75) and “extreme fear” (less than 25).

Now, here is a chart showing the trend of the Crypto Fear and Greed Index over the past year:

The value of the metric seems to have come down in recent days | Source: Arcane Research's The Weekly Update - Week 34, 2022

As you can see in the graph above, the Crypto Fear and Greed Index had been climbing for a few weeks and almost entered greed territory as the prices of coins like Bitcoin rose.

But with the end of the rally, market sentiment immediately fell back into the depths of fear, showing that investor mentality was quite weak to begin with.

The current value of the indicator is only 27, which is only two points away from the extreme fear zone. This is a slight decrease over the past seven days as the calculation had a value of 28 then.

Looks like the value of the indicator was 42 last month | Source: Arcane Research's The Weekly Update - Week 34, 2022

Nevertheless, the report points out that at the same low $20k levels of the Bitcoin price as now, market sentiment was much worse back in June, when it was mired in extreme fear.

This means that investors are now more comfortable at these price levels than compared to a couple of months ago.

BTC price

At the time of writing, Bitcoin’s price is hovering around $20.3k, down 5% in the last week. Over the past month, the crypto has lost 14% in value.

The chart below shows the trend in the price of the coin over the last five days.

The value of the crypto has been mostly moving sideways during the past few days | Source: BTCUSD on TradingView

Featured image from Peio Bty on Unsplash.com, charts from TradingView.com, Arcane Research