Bitcoin Slips To Extreme Fear On The Fear And Greed Index

Following visits to the 52-point mark and the neutral zone the previous week, it dropped to 22 over the weekend. Despite the increase to its current level of 23, the Index continues to be in the extreme fear zone of the scale.

The intense concern that investors are presently experiencing may also be observed in the recent resurgence of interest in gold, which is a physical rival to Bitcoin.

A couple of weeks ago when the news of Russia's invasion of Ukraine emerged, it received a lot of reaction in economic markets throughout the world. The long-term viability of the cryptocurrency industry was also put to the test when the price of Bitcoin and other digital assets plunged in the wake of the news. Gold, on the other hand, behaved differently. The price of gold climbed to its highest level in more than a year in the hours after the invasion, rising by 2 percent in only a few short hours.

The Fear and Greed Index

The "fear and greed index" is a numeric scale ranging from zero to one hundred that represents the overall investor sentiment in the cryptocurrency markets, and it is calculated as follows:

Anything over 50 on the measure indicates greater greed than usual, while a reading of 50 indicates neutrality. A fear index score below 50 indicates that the typical investor is experiencing fears.

Values below 25 indicate extreme fear, which indicates that investors are very concerned, but this might also suggest an excellent time to purchase cryptocurrency.

Things are not looking good for the larger crypto market right now, as the values of crypto-assets continue to fall. At the time of writing this article, Bitcoin is on its sixth consecutive day of losses, and according to data from Coinmarketcap, it has lost 7.61 percent in the last seven days. Ethereum is also down 9.70 percent, while Cardano and Solana are down 12.24 percent and 13.41 percent respectively.