Bitcoin Fear And Greed Index Breaks Level 7, Market Enters Phase Of Extreme Fear?

Bitcoin, the price continues to be erratic. (Unsplash)

JAKARTA – The decline in cryptocurrency prices in recent weeks has made the crypto market sluggish. In the midst of market panic, investors chose to sell their holdings in order to save the remaining funds.

A gauge of market conditions and a negative sentiment analysis, the Bitcoin Fear and Greed Index has fallen even deeper into the extreme fear phase. The metric is currently at its lowest point since the global pandemic, at level 7.

Starting at the end of March 2022, the crypto market conditions underwent a massive change after BTC was predicted to break through the level of 50,000 US dollars per coin. However, the price of BTC fell for the worse. This was followed by the bleakest event in cryptocurrency history, the collapse of LUNA in May which caused massive losses.

Bitcoin had broken through to its lowest position since December 2020, which was at a price of 20,000 US dollars per BTC. The market has entered a bearish trend recently. These conditions dragged altcoins to fall even deeper.

According to data from CoinMarketCap, Bitcoin is currently trading at a price of 21,421 US dollars per BTC, at 16:30 WIB, Thursday, June 16, 2022.

The bearish trend that dominated the market resulted in major changes in investor confidence and the market picture. Current market conditions are described in the metric Bitcoin Fear and Greed Index which summarizes all sentiments by measuring various data including volatility levels, surveys, social media comments, and more.

The Bitcoin Fear and Greed Index metric displays numbers from 0 (extreme fear) to 100 (extreme greed). In the last few months this metric has decreased, and now it has fallen to 7 in the red zone of extreme fear.