The fear and Greed Index is at its lowest level since March 2020’s Covid-19 crash, according to the latest data.
Despite its simplicity, the Fear and Greed Index has become one of the most prominent measures of market emotion in the cryptocurrency sector. At 8 on the 0-100 scale, it is the lowest since the COVID-19 disaster two years ago.
Cryptocurrency market mood may be measured using one of the most basic yet widely used indicators: the Fear and Greed Index. When the COVID-19 disaster occurred over two years ago, its 0-100 value decreased to 8.
There is a lot of concern in the bitcoin market right now, as seen by the Fear and Greed Index readings that are at historically low levels. According to Warren Buffett’s well-known adage, these kinds of circumstances are usually fantastic purchasing opportunities.
When others are greedy, be afraid. When others are afraid, be greedy.” Despite this, a literal interpretation of this indication in the crypto market might lead to a rapid liquidation of money. Extreme fear and extreme greed typically begin at the beginning of drops and at the conclusion of rises.
Fear and Greed Index Moving Average research demonstrates that even a return to uptrends does not guarantee a return to downtrends. It turns out that the beginning of the cryptocurrency bull market usually takes many months after the severe lows of the index. Consolidation and a sideways trend were common during this time.
Lowest level after the COVID-19 disaster
Fear and Greed Index data from Alternative.me shows that today’s score is 8 out of 100. After six months of losses, its value has finally stabilised. Only a handful of times over this time span have we seen a reading above the “severe” or “terror” ranges.
This is the third occasion in the index’s entire existence that a value of 8 or below has been achieved (red circles). Bitcoin hit a low of $6,000 in February 2018, $9,320 in August 2019, and $3,782 in March 2020, all in the same month.
Even when bitcoin achieved the global bottom of the last bear market at $3156 in December 2018, it pushed the Fear and Greed Index to a value of 9. Today we have a value of 8 or below for the 4th time since this signal was introduced.