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Judging by the current state of the crypto index of fear and greed, the turmoil in the market persists and it demonstrates the level of “extreme fear”.
Over the past month, the level of fear and greed has not risen above the level of 27 (May 5). For several weeks now, the situation with the crypto index has shown “extreme fear” in the mood of users. At the time of writing, the index was fixed at around 17 out of 100, and on May 17, the decline reached 8.
And although the current situation looks somewhat more positive than what was noted 2 weeks ago, the index still shows “extreme fear”. The site notes that:
- A state of extreme fear may indicate that depositors are too excited. This situation can be a time for shopping.
- At a time when depositors are overly greedy, this may indicate that a correction will occur in the market.
The creators remind of the extremely emotional behavior of the crypto market. Users tend to become greedy during market growth, which in turn can lead to FOMO. In addition, users often sell their assets, looking in panic at the red numbers of the charts.
It is important to evaluate the index, but to analyze various factors, not just one indicator.
Thus, Google Trends data on the query “Bitcoin” around the world show an increase in user interest. Apparently, the recent Terra fiasco led to it. Prior to this, interest in the search showed a slight decrease, as is noted now. However, on May 8-14, there was a rush, and users were able to raise the figure to 100, for the first time in a long time.
Well, the situation with the volatility of Bitcoin to one degree or another can be traced on almost any of the available charts. For some, this becomes a reason for panic, and experienced market players are already accustomed to such fluctuations.
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