As of the latest data available, the Crypto Fear and Greed gauge recorded a figure of 29.
Indicating a prevailing sense of fear within the market, the current reading was an improvement from the previous month’s bearish sentiment, which was exacerbated by significant price corrections and a recent dip below the $60,000 mark.
The Weakest Market Sentiment in the Past Year
Employed as a valuable tool for investors, the Fear and Greed Index aids in determining optimal buying and selling moments. Extreme fear levels typically present lucrative buying opportunities in the crypto sphere, while excessively optimistic markets often foreshadow impending price peaks.
Determined by Bitcoin’s characteristics, given its vast influence on the broader crypto landscape, the index factors in aspects like volatility, market momentum, and social media interactions.
Amid a notably hopeful period back in May, the sentiment has unfortunately soured since then.
Following the post-halving anticipated bull run in April, the ongoing downtrend from March onwards has bred substantial concern among crypto enthusiasts.
Recorded in July and early August were index figures plunging below 30, marking a significant low not witnessed in a year.
Presently, the index stands at 29, reflecting a notably depressed sentiment, yet potentially proffering a buying opportunity for the ensuing 6-12 months.
Delving into Bitcoin’s Statistical Measures
Over the past month, Bitcoin’s Social Volume has steadily waned. The Weighted Sentiment, initially positive upon Bitcoin’s reclaiming of the $60,000 level in mid-August, has gradually trended downwards in recent weeks.
Simultaneously, the Open Interest witnessed a swift decline following BTC’s rejection at the $64,000 resistance barrier. On the whole, market sentiment skewed bearish, with the minority considering buying opportunities.