Recent reports indicate that the Bitcoin market fear and greed index is in a state of “extreme fear”. This is the first time since April 2020 (April 99) that this index has reached this range. The Fear and Greed Index shows the emotions that dominate the current state of the Bitcoin market.
to the the report CoinDesk is the current state of market sentiment from the fall of the Bitcoin price from a high of $ 65,000 to $ 43,200.
The fear and greed index is currently in the range of 21, which indicates intense fear. Norwegian company Arcane Research, which specializes in market analysis, reported that last week the fear and greed index was in the range of 73, which indicates “greed” in the market. The company wrote in its report:
Last week was full of fear, ambiguity and uncertainty in the market and the price of bitcoin fell. In the past, a highly feared market provided investors with a great opportunity to buy in uptrend cycles.
In another part of his report, Arkin Research discusses the reasons for this market situation. According to the company, the price difference of Scale has reached a record 25 percent. This difference, known as the “discount discount”, determines the distance between the price of bitcoin in the investment fund fund and the price of this digital currency in instant exchanges. Arkin Research writes about this:
If this discount reaches a high level, it could indicate a short-term risk for Bitcoin.
Bitcoin derivatives market capitalization rate and negative rate are other factors that Arkin Research mentions. Over the past week, we have seen the funding rate fall below zero twice; The first time last week coincided with a sharp increase in sales pressure in the market, and the second time goes back to Elon Musk’s comments about bitcoin. Arkin Research wrote that the capital supply rate entered the neutral range on Tuesday:
With the market falling yesterday, a $ 1 billion futures contract became liquid.
The company also states that market fluctuations have reached their highest level since February. Bitcoin monthly fluctuations have reached around 4.5%, which shows that Bitcoin has fluctuated on average 4.5% per day.