According to data, the Bitcoin market has reverted back to its greedy nature after a three-month period of investor panic.
The “fear and greed index,” which measures investor attitude at the moment, shows that the bitcoin market has returned to its previous greedy state after nearly three months of anxiety.
This feeling is quantified using a number scale ranging from 0 to 100. In the “fear” category, all values lower than fifty, and all values higher than fifty, are considered greed.
The market is in a state of extreme greed and severe anxiety when the index reaches extremes of 75 and 25.
This may be the best time for certain investors to exit the market due to history showing that market peaks form around these times. Furthermore, they believe that buying during times of tremendous panic is preferable because bottoms are more likely to occur during these times.
Be afraid when others are greedy, but greedy when others are afraid. This is the Warren Buffet quotation that best fits this concept.
We can see the trend in the Bitcoin fear and greed index in this graph from Arcane Research’s report this week:
According to the chart above, when the data was released yesterday, the market sentiment had almost left the fear region because the indicator indicated a value of 48.
To put it mildly, the stock market has been on edge since November. However, the metric has recently seen a big rise, and investor mood is now returning to greed for the first time in three months as the index value is now around 54.
Bitcoin’s price could benefit from a shift in market attitude to one of greed, as such a sentiment typically arises during bull runs.
Price of BTC
After a 13-percent increase in seven days, Bitcoin’s current price is $43.5,000. The cryptocurrency’s value has increased by 5% in the last month.
The price of BTC has been on a downward trend for the past five days, as shown in the graph below.
Bitcoin has seen a dramatic rise in price over the last few weeks. Yesterday, the cryptocurrency’s price momentarily surpassed $45,000, but it quickly retreated to its present levels.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.