Sudden declines and exits in the crypto market are among the most important factors affecting the emotions and actions of crypto investors.
As it is known, investors tend to invest in rising products and this is called FOMO (fear of losing the opportunity).
Conversely, when the market moves on a bearish basis, people get caught in the FUD (fear, uncertainty and doubt). In this case, the effect of sales increases.
The “fear and greed index” is an indicator that represents the overall sentiment of the crypto market on a numerical scale from 0 to 100. 0 means “extreme fear” and 100 means “extreme greed”.
Fear and Greed Index
The fear and greed index, which is also available on our site and offered by alternative.me, has been extremely greedy in recent weeks and has already reached record levels in recent months.
According to the data created by the crypto money research company Arcane Research with different calculations, this value has reached the highest level in 7 months in the last 1 week.. Having reached the level of 84 in the past days, the value reached record levels just as BTC rose to its peak price.
The decline in BTC after this last ATH also directly affected the fear and greed index. Values are still in the extreme greed category.
This means that the crypto market still expects prices to be higher.
You can find our analysis of the critical levels for BTC below: