Buy or Wait? Crypto Fear and Greed Index Hits 27 (First Time in 3 Weeks)

The crypto market has been enveloped by a wave of bearish trend for the past few days. This has had a significant impact on investor sentiment.

According to the Crypto Fear and Greed Index, investors are exhibiting extreme fear amid concerns that the market will continue to decline.

What is the Crypto Fear and Greed Index?

The Crypto Fear and Greed Index is an indicator used to measure market sentiment among crypto investors. The tool oscillates between 0 and 100, divided into five groups. They are extreme fear (0-24), fear (25-49), neutral (50), greed (51-74), and extreme greed (75-100).

It tracks the social signal, market conditions, and other factors to characterize the dominant sentiment in the market. The metric helps market watchers to know the emotional state of the market. Alongside other market indicators, investors monitor the Crypto Fear and Greed Index to know the best time to buy or sell.

Whenever the indicator leans towards greed, it means that the market participants are bullish and optimistic about the market condition. Oftentimes, the index points to greed or extreme greed during periods when the crypto market is surging.

Conversely, a shift toward fear or extreme fear indicates that the market is bearish and investors are panic-selling and dumping their assets out of fear of further loss of investments. In such conditions, investors tend to shift their assets to safer investments with lower volatility.

Notably, contrarian investors go the opposite direction from the dominant sentiment. For instance, in cases when the market is extremely fearful and investors are offloading assets, they accumulate tokens.

Extreme Fear Grips Crypto Investors

With the Crypto Fear and Greed Index currently at 27, the crypto market is extremely fearful. The reason is not far-fetched, as the global crypto market has plummeted below $3.5 trillion, its lowest point since early July.

The last time the crypto market was extremely fearful was on October 18th, when the BTC tanked below $107,000. At the time, the Crypto Fear and Greed Index was 25.

Presently, bitcoin has taken a significant hit, dropping to around $102,000 at the time of writing. Unsurprisingly, 77% of Polymarket bettors believe that the apex cryptocurrency will drop below $100,000 this month.

The post Buy or Wait? Crypto Fear and Greed Index Hits 27 (First Time in 3 Weeks) appeared first on CoinTab News.