The prominent social indicator called the "Fear and Greed Index" developed by alternative.me it is one of the best ways to determine the current social sentiment in the cryptocurrency market. In addition to evaluating the current state of the marketit can give us some clues about upcoming events.
According to the official website, the fear and greed index currently stands at the value of 26, which marks the market as fearful. In the end, the market persisted in "extreme fear," a more aggravated version of the current level.
In โFearโ mode, investors tend to move their funds away from exchanges, refrain from trading much of their portfolios, and prefer to keep their funds in stable assets in investment tools that are not as volatile as some cryptocurrencies.
Over the past two weeks, the market confidence index has held relatively steady as volatility of the cryptocurrency market stabilized after the implosion of FTX. Despite the continued migration of funds from cryptocurrency exchanges to private wallets, the panic in the market subsided and most investors remained calm compared to the same period about a month ago.
unfortunately historical analysis The graph shows that such periods do not last very long. A significant drop in volatility in the market is a great condition to calm investors who have been selling most of their assets during the storm in panic, causing the state of "extreme fear". But the low volatility is temporary, and depending on the corresponding indicators and factors, the market is more likely to fall further than to bounce with the next spike in volatility.
At press time, Bitcoin is trading at $17,159 and is showing the lowest intraday volatility we have seen in the last two months.
