{"id":13560,"date":"2022-04-12T12:45:24","date_gmt":"2022-04-12T12:45:24","guid":{"rendered":"http:\/\/egrowonline.com\/?p=13560"},"modified":"2022-04-12T12:45:24","modified_gmt":"2022-04-12T12:45:24","slug":"crypto-market-sentiment-drops-to-extreme-fear","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=13560","title":{"rendered":"Crypto Market Sentiment Drops to &#8220;Extreme Fear&#8221;"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div><a target=\"_blank\" class=\"article__lead-img--wrapper\" href=\"https:\/\/u.today\/arman-shirinyan\" rel=\"noopener\"><br \/>\n<img loading=\"lazy\" decoding=\"async\" width=\"224\" height=\"140\" alt=\"article image\" src=\"https:\/\/u.today\/sites\/default\/files\/2021-08\/8993.jpg\" class=\"author__item-user-avata\" \/><br \/>\n<\/a><\/p>\n<div class=\"article__lead-info\"><a target=\"_blank\" class=\"article__lead-name\" href=\"https:\/\/u.today\/arman-shirinyan\" rel=\"noopener\">Arman Shirinyan<\/a><\/p>\n<p>Cryptocurrency market becomes fearful as Bitcoin shows weakness, falling below $40,000<\/p>\n<\/div>\n<\/div>\n<div>\n<div class=\"article__contents\">\n<p>Contents<\/p>\n<ul class=\"article__contents-list\">\n<li class=\"article__contents-item\"><a target=\"_blank\" class=\"article__contents-link link-pseudo\" href=\"#h20\" rel=\"noopener\">Bitcoin plunge causes panic<\/a><\/li>\n<li class=\"article__contents-item\"><a target=\"_blank\" class=\"article__contents-link link-pseudo\" href=\"#h31\" rel=\"noopener\">Long-term investors remain calm<\/a><\/li>\n<\/ul>\n<\/div>\n<p>According to the\u00a0<a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Alternative.me<\/a>\u00a0cryptocurrency sentiment &#8220;Fear and Greed&#8221;\u00a0<a target=\"_blank\" href=\"https:\/\/u.today\/bitcoin-could-plunge-to-26k-if-this-pattern-plays-out\" rel=\"noopener\">indicator<\/a>, the digital assets market has entered\u00a0the &#8220;extreme fear&#8221;\u00a0state.<\/p>\n<h2 id=\"h20\">Bitcoin plunge causes panic<\/h2>\n<p>The main reason behind the strong change in the indicator&#8217;s value is caused by the most recent Bitcoin drop below $40,000, which was considered impossible amid the cryptocurrency market rally we saw in March.<\/p>\n<figure><img decoding=\"async\" alt=\"Bitcoin chart\" data-entity-type=\"file\" data-entity-uuid=\"592d0cd4-b2ca-4d5c-8467-cff832fdad41\" src=\"https:\/\/u.today\/sites\/default\/files\/inline-images\/12046.PNG\" \/><figcaption>Source: <a target=\"_blank\" rel=\"nofollow noopener\" href=\"https:\/\/alternative.me\/crypto\/fear-and-greed-index\/\">Alternative.me<\/a><\/figcaption><\/figure>\n<p>As Bitcoin started slowly losing a large part of its value, short-term traders started to actively get rid of their holdings, which created even more selling pressure on the digital gold and caused panic in the cryptocurrency community.<\/p>\n<p>Since the indicator includes\u00a0social sentiment data, it affected the value shown by it greatly.<\/p>\n<h2 id=\"h31\">Long-term investors remain calm<\/h2>\n<p>According to data provided by IntoTheBlock, long-term investors are remaining calm and buying the dip as their holdings increased for 2 million BTC in recent weeks. On the other hand, traders and short-term holders are actively exiting the market, awaiting a further drop in the mid-term.<\/p>\n<p>Alternative.me&#8217;s indicator includes data like volatility and market momentum, which allows it to reflect both social and technical data. According to the indicator&#8217;s official page, it measures the current volatility of <a target=\"_blank\" href=\"https:\/\/u.today\/bitcoin-could-plunge-to-26k-if-this-pattern-plays-out\" rel=\"noopener\">Bitcoin<\/a> and compares it with average values in the last 1-3\u00a0months. The rise in volatility plays out in favor of a fearful market.<\/p>\n<p>In addition to\u00a0average volatility, developers measure trading volume and market momentum. As buying volumes increase during trending markets, and vice versa, it is\u00a0considered greedy whenever Bitcoin is plunging.<\/p>\n<p>At press time, <a target=\"_blank\" href=\"https:\/\/u.today\/bitcoin-could-plunge-to-26k-if-this-pattern-plays-out\" rel=\"noopener\">Bitcoin<\/a> trades at $40,336 after bouncing from $39,187 in a\u00a0matter of hours, which shows large buying volume concentrated around $39,000.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/u.today\/crypto-market-sentiment-drops-to-extreme-fear\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arman Shirinyan Cryptocurrency market becomes fearful as Bitcoin shows weakness, falling below $40,000 Contents Bitcoin plunge causes panic Long-term investors remain calm According to the\u00a0Alternative.me\u00a0cryptocurrency sentiment &#8220;Fear and Greed&#8221;\u00a0indicator, the digital assets market has entered\u00a0the &#8220;extreme fear&#8221;\u00a0state. Bitcoin plunge causes panic The main reason behind the strong change in the indicator&#8217;s value is caused by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[40],"tags":[62,293,3000,776,219,1691],"class_list":["post-13560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis","tag-crypto","tag-drops","tag-extreme","tag-fear","tag-market","tag-sentiment"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/04\/14015.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13560"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13560\/revisions"}],"predecessor-version":[{"id":13562,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/13560\/revisions\/13562"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/13561"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13560"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}