2022: The Year Extreme Fear Took Over The Crypto Market

The year 2022 so far has seen the crypto market spend most of its time in the fear territory, with a large chunk of it being especially deep into extreme fear.

Crypto Fear And Greed Index Continues To Point At “Extreme Fear”

According to the latest weekly report from Arcane Research, the market has continued to be fearful without any breaks for 178 days now.

The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the crypto sector.

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values above 50 signify that investors are greedy right now, while those below the threshold suggest a fearful market.

Values of more than 75 and less than 25 towards the ends of the range imply sentiments of “extreme greed” and “extreme fear,” respectively.

Now, here is a chart that shows the trend in the crypto fear and greed index over the past year:

The value of the metric remains quite low | Source: Arcane Research's The Weekly Update - Week 38, 2022

As you can see in the above graph, the crypto fear and greed index has continued to be at a low value in recent weeks.

The current value of the indicator is 20, which means the market sentiment is that of extreme fear at the moment.

In total, the investors have been fearful for 178 consecutive days now, the longest streak since the metric was created back in 2018.

For a great chunk of this time, the crypto market has actually had an extremely fearful sentiment. Prior to the relief rally in prices of coins like Bitcoin back during August, the sector saw a record extreme fear run.

Overall during the year 2022, the indicator has spent very few days in the greed territory. Extreme fear has taken over the market for much of the time, and when there hasn’t been bottom sentiment, there has still been fear looming around the investors’ minds.

Historically, the relevance of extreme fear territory has been that cryptos like Bitcoin have generally observed bottoms during stretches of such deep sentiment.

The report notes that while accumulating in these periods can be a good strategy, investors should be aware that the fearful sentiment can go on for much longer still.

BTC Price

At the time of writing, Bitcoin’s price floats around $19k, down 1% in the past week.

Looks like the value of the crypto has already come down from the surge a couple of days ago | Source: BTCUSD on TradingView Featured image from Natarajan sethuramalingam on Unsplash.com, charts from TradingView.com, Arcane Research

from NewsBTC https://ift.tt/j4uA0sl
via IFTTT

Comments

DeFi isn’t dead, it just needs to fix these 3 critical problems

It’s been a rough year for DeFi, and it may not get any better until projects focus more on security, regulation and usability. The persistent challenges decentralized finance face have been well documented by a handful of analysts and the recent collapse of the Terra ecosystem re-enforced the fact that something is critically wrong with DeFi. I think DeFi today is completely broken for 99% of the population. The promise of a more transparent financial system has been overtaken by greed. UST/LUNA is just the latest in a string of bad developments: — Peter Yang (@petergyang) May 11, 2022 Let's take a look at what experts say DeFi needs to do in order to have another revival. Improved usability To date, the promise of open and uncensored access to a global decentralized financial system has been largely hampered by the complicated interface, confusing multi-step staking processes and lack of clarity surrounding the yields on various tokens. What do you thi...

ENS DAO delegates offer perspective on DAO governance and decentralized identity

AlphaWallet CEO and Spruce co-founder talk about their roles as contributors to the Ethereum Name Service following the project's recent airdrop. Earlier this month, the Ethereum Name Service, or ENS, formed a decentralized autonomous organization, or DAO, for the ENS community. Cointelegraph spoke to two ENS DAO delegates who applied for the opportunity to represent the community and stay involved in the decision making process: Victor Zhang, CEO of AlphaWallet, an open source Ethereum wallet, and Gregory Rocco, co-founder of Spruce, a decentralized ID and data toolkit for developers. Zhang spoke about his experience as an external contributor to ENS and an early supporter since 2018. Zhang initially sought to help ENS by offering Alpha Wallet as a user-friendly tool for resolving .eth names and cryptocurrency wallet addresses. Essentially, if a user inputs an .eth name in the AlphaWallet, it will show the wallet address, and vice versa using reverse resolution. Alpha...

National Futures Association adds rules for members handling digital assets

The CFTC-linked self-regulatory organization (SRO) has disclosure rules for members engaging in activities with BTC and ETH; now, standards of conduct are being added. The National Futures Association (NFA), the United States self-regulatory organization for derivatives markets, has issued a new compliance rule addressing members’ conduct. The new rule complements requirements issued in 2018. The NFA has “well over 100” members that engage in activities with digital asset commodities, but no way to address fraud or misconduct committed by those members, the organization explained to secretary of the Commodity Futures Trading Commission (CFTC) Christopher Kirkpatrick in a Feb. 28 letter as it submitted the proposed new rule for approval. The new rule is modelled on the NFA’s antifraud rules for exchange traded futures and swaps transaction and retail foreign exchange. The NFA is the only registered self-regulatory organization that has delegated authority from the CFTC, giving it a...

Crypto Coin Search

Search This Blog