Key Points
- The Crypto Fear and Greed index indicates a prevalent fear in the cryptocurrency market.
- Bitcoin’s Social Volume and positive engagement have been declining, indicating a bearish market sentiment.
The Crypto Fear and Greed index, a measure of investor sentiment, currently stands at 29, indicating a significant level of fear in the market. This is an improvement from the previous month when heavy price corrections caused widespread market anxiety, worse than the recent drop below $60k.
The negative sentiment has led to a substantial outflow from Bitcoin spot ETFs over the past week. Despite this, El Salvador continues to purchase 1 Bitcoin per day.
The Fear and Greed Index
The Fear and Greed Index serves as a valuable tool for investors, providing insights into when to buy and sell. Typically, extreme fear readings suggest a good buying opportunity in the crypto market, while euphoric markets often signal price peaks.
The Index’s values are determined by Bitcoin’s behavior, as it largely influences the behavior of the crypto market. Factors taken into account include volatility, market momentum, and social media engagement.
Bitcoin’s Market Metrics
Over the past month, Bitcoin’s Social Volume has gradually decreased. The Weighted Sentiment, which was positive when Bitcoin reclaimed the $60k level in mid-August, started to decline over the past three weeks.
The Open Interest also dropped rapidly when Bitcoin was rejected at the $64k resistance zone. Overall, the market sentiment appears bearish, with buyers being in the minority.
