Crypto Fear Index Hits 28, Ending 18-Day ‘Extreme Fear’ Streak

Crypto Market Sentiment is showing signs of life after 18 long days of downright fear. The Crypto Fear & Greed Index just recorded...

Quick overview

  • The Crypto Fear & Greed Index has risen to 28, indicating a shift from extreme fear to cautious optimism in the market.
  • Social media sentiment around Bitcoin is becoming bullish, with discussions focusing on price volatility and institutional activity.
  • Despite positive signs, the Altcoin Season Index remains low, suggesting that altcoins are not performing well compared to Bitcoin.
  • Experts warn that macroeconomic factors continue to influence Bitcoin's price movements, necessitating close monitoring of economic updates.

Crypto Market Sentiment is showing signs of life after 18 long days of downright fear. The Crypto Fear & Greed Index just recorded a score of 28 on the weekend – that’s the first score above “Extreme Fear” since November 10. And you know what? Historically, things like this have marked a low point for Bitcoin, giving investors a good reason to start looking for buying opportunities.

A lot of the guys who know what’s going on have been talking about this shift – like trader Matthew Hyland, who called the index the “most extreme fear level” of the cycle back on November 15. By the 23rd, Crypto Seth was calling it “an understatement”. And then there’s Nicola Duke, an experienced trader, who notes that a rebound usually follows extreme fear readings in Bitcoin prices.

As Bitcoin crept up to $92,000, it was clear that the market was cautiously optimistic for the first time in weeks after weeks of negative vibes.

Social Indicators Are Now Bullish

Social media numbers are backing up the early signs of a market recovery. Santiment, a crypto analysis platform, says the sentiment on social media around Bitcoin is now generally bullish. The topics of discussion have shifted to price volatility, institutional activity, and ETF developments – all signs that more and more people are getting engaged in the market.

Still, market participants are cautious. Even though the social media numbers are looking good, CoinMarketCap’s Altcoin Season Index is still at 22/100 – that’s firmly in “Bitcoin Season,” and it means that altcoins are still not doing as well as Bitcoin. And as for the risk-off mindset that’s still out there? That shows that investors are still not 100% convinced that a big crypto rally is in the cards.

Here are some key points on social sentiment:

  • People are talking a lot about Bitcoin price movements.
  • Institutional activity is driving some positive narratives.
  • ETFs and treasury purchases are influencing people’s perceptions of the market.
  • And altcoins, well, they’re not taking off right now.

Macro Factors That Are Affecting Crypto

The experts are still saying that the big macroeconomic factors will have a significant impact on Bitcoin’s price. Bitwise Europe’s head of research, André Dragosch, said Bitcoin’s price might have been out of whack because people were misreading macroeconomic signals. And that’s not just because of the recession worries – it’s also because of the COVID thing.

Dragosch’s take is that people’s worries about the economy are still dictating Bitcoin’s price movement – and that’s why we’re seeing such unusual market movements. Analysts advise keeping an eye on these macroeconomic updates and staying on the lookout for any institutional movements. They’re going to have a big say in how the price moves over the short term.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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