The weekend has been characterized by a rollercoaster of emotions for the crypto community, with fear gripping investors who are concerned about the latest market conditions. According to current data from Alternative.me, the Crypto Fear & Greed Index sat at 26/100, signaling fear among investors. If the market condition worsens, the indicator may inch closer to extreme fear, a sentiment that could further harm the market. Source: Alternative.me Investors Are Fearful of Market Condition The Crypto Fear & Greed Index compiles investors’ dominant emotional sentiments at a given time. The indicator comprises five main states – extreme fear, fear, natural, greed, and extreme greed. This indicator helps market participants access the prevalent emotional conditions needed to
Topics:
Mandy Williams considers the following as important: AA News, Bitcoin (BTC) Price
This could be interesting, too:
Chayanika Deka writes Ethena Labs Launches USDtb, Backed by BlackRock’s BUIDL Fund
Wayne Jones writes Prometheum Files Lawsuit Against Critic Matthew Blumberg Amidst Scam Accusations
Wayne Jones writes USDT Transfer Volume on TRON Reaches All-Time High of 7.2B
Chayanika Deka writes Lido Announces Phase-Out of Polygon Liquid Staking Protocol After Community Vote
The weekend has been characterized by a rollercoaster of emotions for the crypto community, with fear gripping investors who are concerned about the latest market conditions.
According to current data from Alternative.me, the Crypto Fear & Greed Index sat at 26/100, signaling fear among investors. If the market condition worsens, the indicator may inch closer to extreme fear, a sentiment that could further harm the market.
Source: Alternative.me
Investors Are Fearful of Market Condition
The Crypto Fear & Greed Index compiles investors’ dominant emotional sentiments at a given time. The indicator comprises five main states – extreme fear, fear, natural, greed, and extreme greed. This indicator helps market participants access the prevalent emotional conditions needed to make appropriate investment decisions.
A fear index indicates that investors are afraid of the market condition and selling off their crypto stash. Alternative.me’s data showed that the indicator was 34/100 yesterday. However, its current metric shows that the fear has grown.
The last time such fear enveloped the crypto market was in mid-July when the German government sold off 50,000 BTC seized from the film piracy website Movies2K. At the time, BTC dropped to as low as $54,000, the first such drop since late February.
Why Is the Market Dumping?
The reason for investors’ fears about the market conditions is not far-fetched. Hours ago, the leading cryptocurrency tanked below $49,500 for the first time since mid-February. This significant drop has erased over $500 billion from the crypto market within the past several days.
Although BTC has reclaimed the $52,000 price mark, lingering in that range for hours might raise the suspicion that the asset may drop again.
In a recent tweet, BitMEX co-founder Arthur Hayes attributed the sudden price decline to a whale dumping crypto. Other factors that may have triggered the bearish trends are the weakening United States economy, the uncertainty surrounding the U.S. Federal Reserve’s next move on its fiscal policy, and the frequent outflows from the spot Bitcoin exchange-traded fund.