Bitcoin (BTC) has stabilized at around $ 55,000 after dropping $ 6,000 in a single day, but crypto market sentiment is still in shock.
According to the Crypto Fear & Greed IndexAs of November 27, the emotions are now more terrifying since the end of September.
Crypto sentiment dives into 'extreme fear'
Fear & Greed, which takes a number of factors to calculate a standardized sentiment score for crypto markets from 1 to 100, currently sits at 21.
On Friday it took its toll on the metric, the score more than halved in 24 hours from its previous position of 47.
Those two readings correspond to a feeling that goes from "neutral" to "extreme fear", bypassing the "fear" zone entirely.
While a expected reaction, the apparent upset in the emotional state of market participants is becoming a source of amusement for some household names.
Investor and businessman Alistair Milne pointed out that "extreme fear" is not an adequate reaction to the price of BTC / USD at $ 54,000. In fact, the last time Bitcoin's spot price was at those levels in mid-October, Fear & Greed measured 78 - "extreme greed" territory.
"So scared and we're at $ 54,000. Wild," he said. summarized.
On September 30, when the index last reached 21/100, BTC / USD was trading at around $ 43,800 on Bitstamp.
Funding rates see overnight restart
As Cointelegraph reportedThe latest and deepest phase of the BTC price correction came as traders' habits on exchanges remained curiously upbeat.
Financing fees, which was positive despite Friday's move, showed that market expectations were for a quick recovery.
Related: Bitcoin reverses 'bear market' to $ 53.5K as Pfizer wins in panic over coronavirus variant 'Nu'
However, at the time of writing on Saturday, it appears that the trip to lows of $ 53,500 was enough to restore the mood: Funding rates have returned to normal and show no bullish bias.
However, as analytics firm Delphi Digital noted this week, funding is still lower relative to the first half of 2021, and this may indicate a lack of overall direction.
"Funding rates remain low in futures markets. This could be a sign that short-term leveraged traders are still undecided on direction," the researchers say. saying Twitter followers.
"Looking back at the beginning of the year, the bullish rise has been accompanied by a significantly higher funding rate."
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