Things have been rough for the crypto industry and market lately, with Bitcoin (BTC) and numerous altcoins all participating in the struggle. However, things look to be gradually improving once again as BTC finally recovers from its crash and has even managed to cross the $40,000 mark before decreasing slightly to its current price of $39,179.
Nevertheless, this is all an indication of the overall sentiment and attitude that various investors have displayed as far as the crypto market may be concerned. The market has since normalized a bit following a period of extreme FOMO and FUD that saw numerous investors and traders experience heavy losses. Lastly, the Fear & Greed Index had returned to a relatively less fearful condition as well.
The recent market crash had been the worst one experienced by Bitcoin for a long time. Of course, this was due to a number of reasons, mainly Elon Musk’s decision to remove BTC from Tesla’s list of payment options, China banning BTC mining, and the overall increasing demand for crypto mining to become more environmentally friendly, cost-effective and to consume less energy. Ultimately, this all led to the flagship crypto experiencing a dip of more than $20,000 in a short amount of time, as the cryptocurrency bottomed at around $30,000.
Understandably, such a negative development would normally result in panic and fear for a long time to come, perhaps even leading to many investors leaving cryptocurrencies behind completely, in a situation quite similar to the one that had occurred in March of last year. However, this was not the case for long, as BTC began recovering relatively quickly following the crash. In less than a month, Bitcoin increased by more than 30%. This just highlights the highly unpredictable and volatile nature of the crypto industry, if nothing else. Traders are now also a bit more comfortable and at ease as compared to a little while ago.
Fear & Greed
The aforementioned Fear & Greed Index has often been used as a popular source of tracking and calculating different types of varying data, which includes social media, volume, volatility and surveys.
The index also has the additional function of providing the overall general sentiment of the investors towards whatever state the BTC market may find itself in at any given time, making it an extremely useful tool and resource to have.