Bitcoin hit a record high near $69,000 last month.
New Delhi: A tireless group of Bitcoin investors will not let Saturday’s 21% drop, in the span of a few hours, curb their enthusiasm.
They are now promoting the “Fear & Greed” index through Twitter and other social media to justify their claim that the recent price drop is indeed a great opportunity to participate. join the Bitcoin group.
Bitcoin Fear Index. It’s Buy Buy Buy. pic.twitter.com/pcJVQNdPGg
– Saitama King Dubai (@scrypto_1977) December 5, 2021
In traditional markets, Fear-Greed measures are a measure of investor sentiment based on factors such as volatility, momentum, and demand. The crypto version – developed by alternative.me – seeks to determine if traders are being overly optimistic (represented by Greed) or bearish (Fear) and considers several other factors such as social media trends and Google search terms.
The index, which ranges from 0 (“Extreme Fear”) to 100 (“Extreme Greed”), is currently at 25. When Bitcoin hit a record high near $69,000 last month, it was around 80. The price of the largest cryptocurrency is trading at around $51,000 at 1:14 p.m. New York time in New York Tuesday.
Bitcoin fans interpret the index, as well as the relatively lower Bitcoin price, to mean that it is oversold and the price is about to recover and go to the “moon,” said Troy Wiipongwii of the blockchain research lab at the university. William & Mary said.
Images of the indicator are creating spins on Twitter, with some calling the chart “sexy” and replacing the word “Fear” in the image with “buy”.
Ali Yilmaz is one of the investors who closely follows this index. The 32-year-old college instructor based in Bolu, Turkey said he will likely add several altcoins to his 10,000 euro ($11,249) portfolio including Bitcoin, Ethereum and Ripple.
“We have too little information about cryptocurrencies, so this ‘Fear and Greed’ indicator is important for understanding market sentiment,” he said, “I buy fear and sell greed. blue.”
Bitcoin enthusiasts in the past have used a variety of reasons to explain why a Bitcoin price drop is completely normal, including comparing it to previous rallies or saying the volatility is part of the digital currency’s DNA.
And while experts say the indicator can be an indicator of market sentiment, it has serious flaws.
“Ultimately, there is no indicator or indicator that can effectively predict market movements,” said Wiipongwii.
