The price of Bitcoin finally managed to stabilize at the price of $55,000 after it dropped by around $6,000 in a single day- and yet the crypto sector was in shock. According to a report published by the Crypto Fear & Greed Index as of the 27th of November, most of the motions as of now have been the most fearful since they were in late September.
Crypto sentiment for Bitcoin dives into “extreme fear”
Fear & Greed, which would definitely divulge into a basketful of factors to start computing a far standardized sentiment score for crypto markets, especially those of Bitcoin, from 1-100, currently sits at 21. Friday did manage to take a chunk out of the metric, with the score going on to half in 24 hours from its earlier position of 47.
Those two readings definitely correspond to the sentiment that turns neutral to extreme fear, completely missing out on the zone of fear altogether. While this reaction is pretty unexpected, the upheaval that is quite apparent to the emotional state of market participants is definitely turning into a source of amusement for the rest.
Alistair Milne, famed entrepreneur, and investor, recently noted that extreme fear was hardly an appropriate reaction to the trading of Bitcoin-USD trading at $54,000. In fact, the last time that the spot price of the cryptocurrency was on such levels was back in mid-October where Fear & Greed measured 78- which has also been considered as an ‘extreme greed’ territory. He went on to summarize that despite such an amount of fear, the cryptocurrency was just at $54k.
As reported by Cointelegraph, the deepest and latest phase in the correction of the price of Bitcoin did come as trader habits on exchanges managed to stay extremely optimistic. At the same time, the funding rates did manage to show that market expectations were in for a swift recovery- despite the move on Friday.
