Well-liked index attracts grim image which may be hinting at yet one more BTC plunge
The outstanding social indicator known as “Concern and Greed Index” developed by Alternative.me is without doubt one of the greatest methods of figuring out the present social sentiment on the cryptocurrency market. Along with evaluating the present state of the market, it could give us some hints on upcoming occasions.
Based on the official web site, the Concern and Greed Index at present stays on the worth of 26, which marks the market as fearful. Ultimately, the market endured in “excessive concern,” a extra aggravated model of the present degree.
Within the “Concern” mode, traders have a tendency to maneuver their funds away from exchanges, abstain from buying and selling giant components of their portfolios and like holding their funds in steady property on funding instruments that aren’t as risky as some cryptocurrencies.
Within the final two weeks, the market sentiment index has been comparatively steady because the volatility of the cryptocurrency market stabilized after the FTX implosion. Regardless of the persevering with migration of funds from cryptocurrency exchanges to personal wallets, the panic available on the market disappeared, with the vast majority of traders staying calm compared to the identical interval round a month in the past.
Sadly, historic analysis of the chart exhibits such durations don’t final lengthy. A major drop in volatility on the market is a superb situation to relax traders who have been promoting most of their property throughout the storm in panic, inflicting the state of “Excessive Concern.” However the low volatility is momentary, and, based on corresponding indicators and elements, the market is extra prone to drop additional down slightly than bounce with the following volatility spike.
At press time, Bitcoin is buying and selling at $17,159 and displaying the bottom intraday volatility now we have seen within the final two months.