Bulls are witnessing one of the longest bearish streaks since Terra fell, as general sentiment in the crypto market remains negative. This marks the end of months of speculation and the abrupt exit of investors from the market. It’s also the longest downtrend since the beginning of the year.
The terror is palpable
The sentiment in the crypto market has deteriorated in recent months. The majority of April was spent in the danger zone for cryptos.
Despite previous market turbulence, the Fear & Greed Index stayed high until the current LUNA catastrophe. The action put the stock market into a tailspin. Furthermore, the indicator has fallen to its lowest point in nearly two years, at 12.
More concerning is that the index fell to its lowest level in over two years last week, at 8. It is the second-lowest score recorded on the index, behind the 5 in 2018. The index regained some of its losses after hitting new lows on May 17. However, it has plummeted to 11, its lowest level since April 8.
The Fear & Greed Index’s severe fear reading represents how investors feel about cryptocurrencies right now. The index is low, at 12, indicating that the person is terrified. The enormous amount of sell-offs in the area reflects this lack of trust in the market. These sell-offs are adding to the market’s already deteriorating mood.
Cryptocurrencies are falling in value
This week, Bitcoin suffered another setback, going below $30,000 for the first time in almost a month. It has been stuck in a turbulent trading range for the past several weeks, indicating that a rebound is in the cards.
The price of ETH has plummeted to $1740, down 7%. It’s the latest in a string of setbacks for investors, who have seen their investments plummet by more than $200 billion due to the cryptocurrency’s collapse. Because of the approaching Merge, the move has sparked worry. ETH gas fees, for example, have plummeted to $2.54 and are expected to decline further.
Although bitcoin stayed reasonably constant during the day, altcoins like AVAX and Solana saw large losses. Due to continued selling pressure in major cryptocurrencies, the two have lost about 8% and 5% in the last 24 hours. BNB, Cardano, Polkadot, and other well-known cryptocurrencies are all down 8-9%.
Should Investors purchase cryptocurrency?
It’s often assumed that when the crypto market attitude deteriorates, it’s a good time to invest before things worsen.
For a long time, investors have benefited from this method. However, there have been occasions when things haven’t gone as planned. For example, during the acute fear period, the drop in market sentiment continued.
Despite its flaws, this method is still considered one of the most widely used buy indications. It’s because it helps investors and traders to predict when the market will bottom.
These are mostly used to examine the performance of popular cryptocurrencies like Bitcoin and Ethereum. Although “buying the blood” might provide encouraging results, it’s crucial to remember that evaluating the crypto market isn’t a precise science.