2022: The Year Of Crypto Market Fear

Data shows 2022 has been the year of fear in the crypto market as investors have continued to display poor sentiment for around eleven months now.

Crypto Fear And Greed Index Currently Sits In “Extreme Fear” Territory

As per the latest weekly report from Arcane Research, the cryptocurrency market could soon complete one full year of fearful sentiment.

The relevant indicator here is the “fear and greed index,” which tells us about the general sentiment among investors in the crypto market.

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values greater than fifty imply a greedy mood, while those below the threshold suggest a fearful air.

Outside of these two sentiments, there also exist two subset sentiments, the “extreme fear” and the “extreme greed.” These occur at values towards the ends of the range. That is, those above 75 for the former, and those below 25 for the latter.

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 seems to have been moving sideways during recent weeks | Source: Arcane Research's The Weekly Update - Week 41, 2022

As you can see in the above graph, the current long spell of fear first started way back in mid-Nov of last year as the bull run died down.

Since then, outside of only a few spikes to greed, the crypto fear and greed index has stayed below a value of fifty.

During this period, the metric has actually spent a large amount of time in the extreme fear territory, meaning investors have had a deep bottom mentality in 2022.

The latest value of the indicator has been 22, meaning that investors are extremely fearful at the moment. This isn’t much different from the last week, which observed a value of 24.

The below meter displays where the current market stands compared to last week and last month.

The fear and greed index points at extreme fear right now | Source: Arcane Research's The Weekly Update - Week 41, 2022 BTC Price

At the time of writing, Bitcoin’s price floats around $19.2k, up 1% in the last seven days. Over the past month, the crypto has lost 1% in value.

Below is a chart that shows the trend in the price of the coin during the last five days.

Looks like the value of the crypto has continued to be stuck in a range over the last few days | Source: BTCUSD on TradingView Featured image from Hans-Jurgen Mager on Unsplash.com, charts from TradingView.com, Arcane Research

by Hououin Kyouma on October 20, 2022 at 12:30AM