The crypto community went through a difficult period over the past week as Bitcoin lost more than 10% of its value while pulling many altcoins downhill at the same time. BTC price fell significantly, by $ 8,000 in just a few days, and eventually fell below $ 40,000 – a 7-week low.
This massive setback was fueled by major developments in global financial markets, including a stock market slump and the liquidity crisis in China Evergrande, as well as regulatory uncertainty over the past week. These developments and the associated drop in prices have led to a dramatic shift in market sentiment, as the popular Fear and Greed Index notes.
Yesterday, Bitcoin magazine reported that the Overall Sentiment Index had fallen to 21, indicating “extreme fear”. The last time the index fell to a similar low on July 21st, when Bitcoin price fell to $ 30,000.
The value itself ranges from 0 (extreme fear) to 100 (extreme greed). Its historical values suggest that the coin has moved dizzyingly through the spectrum, as it has only been showing a sense of “extreme greed” last month. While its fluctuations are usually caused by cryptocurrency price movements, many other factors also play a role such as volatility, market volume, surveys, social media trends, and more.
While some market participants remained cautious, many others noticed a silver layer in this cloud of fear. Along with the advice of the legendary Warren Buffet “Be afraid when others are greedy and greedy when others are afraid”, some Bitcoiners have taken this opportunity to “buy the dip”.
Cryptocurrency analyst Anthony Pompliano recently noted that “Buy the Dip” has become a trending topic on Twitter, and he is very supportive of the trend too.
The source: Anthony Pompliano
This trend has been followed by many people including the President of El Salvador who recently purchased 150 BTC worth over $ 6.75 million. Additionally, the world’s third largest Bitcoin whale just bought 321 BTC for $ 40,500 yesterday. The total value of this lot is more than $ 13 million.
The renowned analyst Michaël van de Poppe has to advise His followers are piling BTC in this price range while also saying that this is a healthy correction as a September precedent.
Finally, even the ardent BTC advocate and MicroStrategy CEO Michael Saylor to say In the long run, such cuts are really insignificant as the current price will be a very small number compared to the final value.
MicroStrategy, one of the largest Bitcoin holders, recently bought another 5,050 BTC. Saylor’s bullish outlook has become his motivation to “buy the dip” as he recently stated that it is better to buy BTC when the market cools rather than waiting for the price to hit $ 1 million.
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According to Ambcrypto