Bitcoin is back in the extreme fear zone, and people are freaking just out. Last week by this time, everyone was hopeful, and now in a week, we dropped 4% suddenly. That obviously will cause some panic. Crypto Investors are looking at the charts, seeing red, and wondering if it’s time to run. To be honest I did a little sell today, but it wasn't out of fear but I needed cash to sought some personal stuff out. Although it pains me that I'm selling at this point.
Anyways, Bitcoin was at a solid $86,000, and in just a day, it slid down to $82,300, and even below 79K a while ago. That’s a big hit, especially for those who thought the worst was over with the previous dip.
The shocker to me is Ethereum
It only dipped around 2%, which is quite very interesting. Usually, when Bitcoin takes a hit, the rest of the crypto world follows, but Ethereum seems to be holding on better this time. Maybe it’s because people trust it more or maybe it’s just luck but either way, Bitcoin investors are feeling the worst of it.
The Fear & Greed Index.
For those who don't know, the fear and greed index is a tool that looks at trading volume, market cap, social media chatter, volatility, and even Google searches to figure out how investors feel at any given moment. It ranks emotions on a scale from 0 to 100 and anything below 26 is extreme fear. Right now, we’re at 20 but yesterday, we were at 27, so it tells that most people are pretty scared right now.
Here is a little Hope for you
Historically, when the Fear & Greed Index drops into extreme fear, it often means a bottom is near. People usually panic and sell, and then what happens next? The price finds its floor and bounces back.
So, is this the end? Probably not. But will more people panic and sell? Absolutely.
That’s just how markets work, and that's why emotional intelligence is needed in this field. I wish you the best in your decision making in these hard times.