Bitcoin’s fear sentiment level is dropping below the minimum.
According to CNN Markets: The Fear and Greed Index, Bitcoin has stumbled down to an alarming level in a span of one year. The fear and greed index is the one responsible for tracking any sentiments that the investors, themselves, have.
The level dropped to its lowest beating its former lowest record that was taken way back December 2018 when Bitcoin was still being supported by a minimum.
The chart level reading fell to 11 out of a possible 100 and thus labeling this record as “extreme fear.” However, Bitcoin still does not falter; it is believed that the drop of the fear level is a chance for a possible buying opportunity just staying idle in on place.
Some investors are hardly even moved by the situation. Alex Krüger, a Global macroeconomist, did not even falter to the current selling pressure. Krüger also tweeted the current situation and got some support regarding the sudden drop of the fear level.
He said that he doesn’t like the way the relatively works, but he just admires how accurate it can be in pinpointing bottoms on a daily basis.
The fear and greed index is a contrarian index in a way. It is made up of the idea that excessive fear can result in stocks trading below their values, while greed can result in the stocks being bid up far way above the regular bidding price.
With the drop of bitcoin on the index, it just means that there can be stocks sold below their market value, but this won’t make the leading cryptocurrency company halt in any form. Selling of low-value stocks could lead to the slow rising of the company back to the 50 margins of the index, which is neither greed nor fear.
