The year of crypto market fear
Data shows that 2022 has been the year of fear in the crypto market as investors have continued to show bad sentiment for around eleven months now.
The Crypto Fear and Greed Index currently sits in “extreme fear” territory
According to the latest weekly report from Arcane Research, the cryptocurrency market may soon complete a full year of dire sentiment.
The relevant indicator here is the “fear and greed index”, which tells us about the general sentiment among investors in the crypto market.
The metric uses a numerical scale ranging from zero to one hundred to represent this feeling. Any value greater than fifty suggests a greedy mood, while those below the threshold suggest a fearful air.
Besides these two emotions, there are also two subgroups of emotions, “extreme fear” and “extreme greed.” These occur at values towards the end of the range. That is, those over 75 for the former, and those under 25 for the latter.
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 been moving sideways during recent weeks | Source: Arcane Research's The Weekly Update - Week 41, 2022
As you can see in the graph above, the current long period of fear only started way back in mid-November of last year when the bull run died down.
Since then, apart from only a few spikes to greed, the Crypto Fear and Greed Index has remained below a value of fifty.
During this period, the metric has actually spent a lot of time in extreme fear territory, meaning investors have had a deep bottom mentality in 2022.
The last value of the indicator has been 22, which means that investors are extremely scared at the moment. This is not much different from last week, which had a value of 24.
The gauge below shows where the current market stands compared to last week and last month.
The fear and greed index points at extreme fear right now | Source: Arcane Research's The Weekly Update - Week 41, 2022
BTC price
At the time of writing, Bitcoin’s price is hovering around $19.2k, up 1% in the last seven days. Over the past month, the crypto has lost 1% in value.
Below is a chart showing the trend in the price of the coin over the last five days.
Looks like the value of the crypto has continued to be stuck in a range over the last few days | Source: BTCUSD on TradingView
Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, Arcane Research
