Bitcoin Price Falls, Fear And Greed Index Enters Extreme Fear Phase

Bitcoin price plummeted. (photo: doc. Unsplash)

JAKARTA – In the midst of the decline in Bitcoin (BTC) prices in recent weeks, the Fear and Greed Index metric shows that the position is currently entering a phase of extreme fear. Based on data reports from Coingecko, the price of BTC has fallen 13.4 percent in the past two weeks.

The drop in the price of BTC made investors and traders fearful to the point of selling. This sell-off also triggered a decline in the price of the number one cryptocurrency. It doesn't stop there, the fall in the price of Bitcoin also triggers a decline in altcoin prices.

Reporting from Bitcoin News, since late March, the landscape around major cryptocurrencies has been somewhat bearish. Bitcoin was close to $50,000 per coin at the time but failed and started to lose value gradually. In April alone, BTC plunged more than $10,000 and closed the month below $40,000.

Bitcoin's performance in early May wasn't that great either. Bitcoin jumped to $40,000 per coin after the most recent FOMC meeting, where the Fed said it would raise interest rates by 50 basis points instead of 75, but the hike did not last long.

Soon after, the cryptocurrency plummeted below $36,000, and the situation worsened in the last 24 hours when it fell to its lowest price point since late January at around $34,000 per coin.

The drop in BTC price resulted in a shift in the overall market sentiment, which Bitcoin Fear and Green Index show. By examining community social media posts, surveys, volatility, trading volume, etc., it determines the general feeling towards the asset. The metric shows the final result from 0 (extreme fear) to 100 (extreme greed).

It has been in fear territory since mid-April, but the latest drop in price pushed it to extreme fear. The index is at its lowest since the late January decline.

Recent research on analytical resources shows that the larger number of players and whales sending between 10 and 10,000 BTC to the exchange is significantly more than that of smaller investors depositing from 0.01 BTC to 10 BTC.

CryptoQuant reports that whales can have “open positions in the stock market and realizing profits in crypto could mean reducing risk assets to secure their positions in stocks.”

At the time of writing, Bitcoin is trading at IDR 491,253,310. BTC price performance has decreased by 2.9 percent in the last 24 hours according to data from Coingecko.