Bitcoin (BTC) has stabilized at around $ 55,000 after falling $ 6,000 in just one day – but sentiment in the crypto market is still in shock.
According to the Crypto Fear & Greed Index, emotions on November 27 are currently at their scariest levels since late September.
Crypto sentiment sinks into “extreme fear”
Concern & Greed, which has a basket of factors to calculate a standard crypto market sentiment score of 1-100, is currently at 21.
Friday took its toll on metrics, more than halving the score in 24 hours from the previous position of 47.
These two measured values correspond to the mood, which changes from “neutral” to “extreme fear” – the “fear” zone is completely missed.
During a expected responseClearly, volatility is the emotional state of market participants that becomes a source of joy for some well-known names.
Investor and entrepreneur Alistair Milne noted that “extreme fear” is likely not the appropriate response to BTC / USD trading at $ 54,000. In fact, when the spot Bitcoin price was last at this level in mid-October, Panic & Greed measured 78 – “extreme greed” territory.
“A lot of fear and we’re at 54k. Wild “, he summary.
On September 30, when the index last hit the 21/100 mark, BTC / USD was trading at around $ 43,800 on Bitstamp.
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As Cointelegraph reported, the most recent and deepest period of BTC price correction is coming as trader habits on the exchanges remain incredibly optimistic.
Deposit rates were positive despite Friday’s move, suggesting a rapid market rebound.
Related: Bitcoin reverses the “bear market” at $ 53.5k as Pfizer gets new panic over the coronavirus variant “Nu”
However, at the time of writing on Saturday, it looks like a dip to just $ 53,500 was enough to calm sentiment – borrowing rates are now back to normal and no longer trending bullish. .
However, as analyst firm Delphi Digital noted this week, funding remains lower than it was in the first half of 2021 – and this could indicate some general lack of direction.
“The capitalization rates on the futures market are still low. This could be a sign that traders with short-term leverage have yet to decide in the right direction, ”the researchers said. told Twitter followers.
“Looking back at the beginning of the year, the bullish trend was accompanied by significantly higher financing rates.”