- Fear Index hits a score of 9, marking extreme market fear.
- This marks a score lower than the times of FTX and LUNA.
- The crypto market is expected to react bearishly.
The continuously falling prices of Bitcoin, Ethereum, and other crypto assets have led to a huge fall in market sentiment as well. This sentiment is often measured by the Crypto Fear & Greed Index, a tracker that measures the score of trading sentiment, with the higher scores marking greed and extreme greed and the lower scores marking fear and extreme fear. Today, the Fear Index hit score 9, marking a score lower than major market crisis times.
Fear Index Hits Score 9
The crypto market has seen many historically fearsome and fear-filled days. To highlight some of the most troubling times in the financial and crypto markets in the recent past, those trading in the industry can mark COVID, the FTX scandal, and the LUNA price crash as some of the greatest moments in crypto history where sentiment went crashing down igniting high fear sentiments.
High times of fear are often said to be the right times to accumulate, but only when the crypto market is in a bull market phase. Presently, analysts are certain that the crypto market is in a highly bearish phase and have been predicting that the price of BTC will fall to even lower targets over the coming days. Some expect BTC price to fall as low as the $50,000 price range very soon, expecting the bear market to extend till the next year.
Over the last 24 hours alone, the price of BTC and ETH both experienced large price hits that took their prices down by a significant amount. To highlight, the price of the pioneer crypto asset, Bitcoin (BTC), is down by over 9% falling from $91,000 to $82,000, and continues to dip at a rapid pace. Similarly, the price of the pioneer altcoin asset, Ethereum (ETH), has also fallen over 9% in the last 24 hours, taking its price from $3,000 to $2,700 in a rapid price decline.
Fear Times Are Higher Than FTX and LUNA Times
As we can see from the post above, this post explores how the Crypto Fear & Greed Index dipped to a very low score of 9, a score that hadn’t even been seen when the FTX and LUNA crisis occurred. The post goes on to ponder why this low score has occurred now when bullish regulations and pro-crypto policies have been growing popular across multiple nations.
The post specifically highlights the facts that governments have now openly acknowledged crypto, how clear crypto regulations are gaining traction, how Wall Street products have integrated crypto assets, how Spot ETFs are high with real daily flows, and how institutional rails are actually built out. The post concludes by stating that people are more scared now than during the biggest blowups ever, even though the entire system is 10x stronger. Thus, when fear breaks from here, the bid returns instantly because the capital pipes already exist.
