Now that the dust has settled on the historic, record-breaking collapse the cryptocurrency market experienced earlier this month alongside the stock market, gold, and many other traditional assets, Bitcoin and altcoins have begun to recover.
But although cryptocurrency prices are recovering across the board, according to the crypto market Fear and Greed Index, sentiment is still in extreme fear. Does this mean it’s a time to be greedy while the market is fearful, or is the fear so extreme that taking a new position is dangerous?
Cryptocurrency Market Rebounds, But Sentiment Remains in the Gutter
Because cryptocurrencies are speculative assets, and much of their valuations are derived from hype and promise, investor sentiment is especially important.
And because it is such an important factor, a Fear and Greed Index was designed to track investor sentiment and help to make sense out of that sentiment reaching extremes of fear or greed.
Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit
The index is typically so accurate in representing the emotional state of the market, that it has been used successfully as a trading strategy.
Oftentimes, taking a contrarian position against the market, enormous profits can be made. As the famous Warren Buffett saying goes, it is wise to be fearful while others are greedy, and greedy when others are fearful.
And with the market in such extreme fear, that old adage would suggest that now is the time to buy Bitcoin with everything you’ve got, as fear as never been more extreme.
Not just within the crypto market, but fear is currently everywhere in the world. The coronavirus is a black swan event that’s caused such mass disruption and death, that the entire world is terrified of not only the pandemic itself, but the potential economic fallout that could last for decades as the world recovers.
Because fear is so extreme, both inside and outside of the cryptocurrency market, it’s wise to stay extra cautious when considering any investments or trades right now, and additional risk management strategies should be applied.
It's interesting to see how Bitcoin has recently reached $6700 but market sentiment is still extremely fearful$BTC #Crypto #Bitcoin pic.twitter.com/IgsVzjmqN1
— Rekt Capital (@rektcapital) March 24, 2020
Coronavirus Causing Extreme Fear Means Crypto Investors Should Proceed With Caution
However, reaching extreme fear doesn’t always coincide with a price increase. The last time fear was this extreme, was in August 2019, when Bitcoin was trading above $10,000. In the month following, Bitcoin suffered a $2,000 drop.
That drop didn’t even bring sentiment back to the extreme fear it saw just a month prior, even despite one of the largest drops of the year taking place.
Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?
What’s undeniable, however, is that extreme fear can cause investors and markets to react irrationally. And because there is so much unpredictability due to the coronavirus, its best to play it safe and proceed with caution. origin »
When Donald Trump dabbled in memecoins last month, it set off a floodgate of imitators in the cryptocurrency market. With the re-elected US president’s entry into the cryptocurrency market, there has been a dramatic increase in the number of opportunistic tokens.
Experienced retail traders and long-term investors in the cryptocurrency market understand the driving force in a speculative market algorithm fueled by people and not capital. Decisions and investment plans to buy large amounts of cryptocurrency assets are carried out by individuals with top information and a better idea of the price performance of such assets.
The cryptocurrency market is experiencing dips today, with major digital assets showing declines. Bitcoin, the leading cryptocurrency, dropped by 3%, while Ethereum and Solana saw even steeper falls of 4% and 5% respectively.
Data shows the cryptocurrency derivatives market has suffered a high amount of liquidations in the past day after the crash the altcoins have seen. Altcoin Longs Witness Squeeze, Ethereum Leads In Liquidations The past day has been a volatile time for the cryptocurrency market, with the majority of the altcoins suffering from drops of more […]
The cryptocurrency market is laden with opportunities with over $2. 4T worth of cryptocurrency in circulation. This has attracted an influx of budding and established traders to the market, with hopes of cashing in on the next big opportunity.
Recent market movements have sparked discussions within the cryptocurrency community, with many suggesting that the bull market has come to an end following Bitcoin’s 16% drop from its all-time high of $73.
Despite the recent setbacks experienced by prominent blockchain projects, a new sense of confidence has emerged in the cryptocurrency market. This excitement, according to market observers, is due to a new cryptocurrency’s meteoric rise.
The influx of money into the cryptocurrency market has been remarkable, especially with the surge in derivatives speculation over the past few months. The market caps of various cryptocurrencies have experienced significant growth, with Bitcoin leading the charge by crossing over $10 billion in open interest for the first time […]
Bitcoin’s recent impressive performance has been the driving force behind the significant rise in the cryptocurrency market, leaving investors reaping profits as digital currencies experience a sharp increase in value.
US deficits keep rising despite the economy growing US Treasury returns dropped for the past three years in a row A weakening dollar might cause cryptocurrencies’ next step higher In previous articles published here, I’ve argued that the next move in the cryptocurrency market will likely be driven by the US dollar rather than crypto-related […]
The post Falling US Treasury returns might help the cryptocurrency market appeared first on CoinJournal.
The cryptocurrency market has experienced a significant pullback over the past week after Bitcoin collapsed beneath $26,000. The sudden fall in Bitcoin caused the entire cryptocurrency market to sink as heavyweight giants like Ethereum, Ripple, Binance Coin, and Cardano followed its downside trajectory.
Cryptocurrency investors must exercise caution and discretion when navigating the volatile market. Several circumstances warrant refraining from making investments. First, sudden regulatory changes or governmental bans on cryptocurrencies can have a detrimental impact on the market.
Taking a closer look at the overall cryptocurrency market, we can observe recent trends and movements in various cryptocurrencies. The cryptocurrency market experienced net outflows of $2. 6 billion in the last 24 hours, resulting in a slight decrease in the total market capitalization.
Bitcoin moves the cryptocurrency market Its dependency on the US dollar increased Bitcoin holders better believe that the US dollar is in a bearish market Investing in the cryptocurrency market is not for everyone.
Bitcoin makes up about 48% of the total cryptocurrency market capitalization The share rises to 75% if we include Ethereum and Tether Other cryptocurrencies’ share declined despite the latest cryptocurrency market rally The cryptocurrency market bounced in 2023 and rallied right from the start of the trading year.
As of March 13, the cryptocurrency market has bounced back and is up 6.4% in the last 24 hours, reaching a total market cap of $1.01 trillion. Cryptocurrency investors have been on a wild ride over the past week amid…
The cryptocurrency market continues to show signs of improvement. Bitcoin, the number one cryptocurrency, has continued its price upswing as its breaks above its 200-day moving average. In addition, the market generally has recovered, as crypto enthusiasts believe the crypto winter is close to its end.
Changpeng Zhao discussed various cryptocurrency issues, including regulation and the ongoing bear market. The cryptocurrency space has been in a bear market for the last 12 months, with prices of most coins down by more than 70% from their all-time highs.
The Cryptocurrency Market is gaining widespread adoption, with many top global institutions and even countries trying to have a piece of the pie. Bitcoin, the chief cryptocurrency as per market capitalization, has been sought after by notable investors who have described it to be a hedge against inflation.
On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the fall of the British pound and its impact on the cryptocurrency market.
The meme cryptocurrency niche is one of the most widely grown spaces, with a total market capitalization of $16,991,653,627 and a total trading volume of around $1,966,297,277. Some prominent name in the space includes Dogecoin, Shiba, and Floki Inu.
In the wake of the ongoing carnage in the cryptocurrency market, most cryptos have seen their prices fall to half or less. It is a paradox of the cryptocurrency market that bearish cycles are periods of innovation and that only the most resilient tokens advance.
The cryptocurrency market has gained significantly over the past few days, and the global cryptocurrency market cap is now at $2. 2 trillion. The positive performance has created a bullish trend for most altcoins.
The cryptocurrency market has gained substantially over the past few days. The global cryptocurrency market cap now stands at $2. 1 trillion. THORChain (RUNE/USD) has had notable gains over the past month, and it has outperformed most of the market.
The cryptocurrency market has made a notable gain during the past 24 hours. The global cryptocurrency market cap has increased by 6. 2% during the past 24 hours, and Bitcoin (BTC/USD) has gone back to trading above $40K.
The metric helps investors and users to understand whether a blockchain is going to merely survive, or thrive, says Todd Groth, head of research at CoinDesk Indices.
DeFi lending platform Sentiment has responded to a reentrancy attack that resulted in the loss of $1 million worth of crypto by offering a $95,000 bounty to the hacker.
Crypto investors are becoming more greedy with the price of Bitcoin breaking the $28,000 resistance. The Crypto Fear & Greed Index has now returned to levels not seen since November 2021, which was right around the time when the price of BTC hit its all-time high.
The crypto market sentiment has been on the decline over the last year and it has come in tandem with the decline in bitcoin price. Bitcoin, which moves the entirety of the crypto market most times, has had a tough go of it in recent times.
Liquidations across the crypto market have quickly added up in the last day. Bitcoin had dropped below $22,000, triggering rapid losses for traders. These traders had obviously been following the recent bullish trend in the market but are now paying dearly for it.
