Panic Vs Pandemic: Crypto Market Is More Fearful Than On Black Thursday

Keshav Verma

Last Updated: June 11, 2024 8:29 am

3 mins read

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Following the Bitcoin and wider crypto crash, investors in the market are now more fearful than they were during Black Thursday in March 2020.

Crypto Fear And Greed Index Now Has An Extreme Fear Value of “7”

The “fear and greed index” is an indicator that tells us about the general market sentiment among crypto investors right now.

The metric uses a numeric scale that runs from zero to hundred for representing this sentiment. All values of the index below fifty imply that investors are fearful at the moment, while those above the threshold mean they are currently greedy.

Indicator values of more than 75 and less than 25 signify sentiments of extreme greed and extreme fear, respectively.

Now, here is a chart from the weekly Arcane Research report from yesterday that shows the trend in the crypto fear and greed index over the past year:

Looks like the value of the metric has plunged down in recent days | Source: Arcane Research's The Weekly Update - Week 23, 2022

As you can see in the above graph, the crypto fear and greed index has been in the “extreme fear” territory for a while now.

In fact, this streak of extreme fear, which has been running for 57 straight days now, is the longest the indicator has ever observed.

Also, at the time the report was released (which is yesterday), the index had a value of 8, which was the lowest value since March 2021.

This sentiment was actually worse than the Black Thursday event from back then (which occurred due to the COVID-19 pandemic).

Today, the crypto fear and greed index has further dropped in value, now showing just 7.

The sentiment in the crypto market now seems to be the worst it has been since 2019 | Source: Alternative.me

Historically, extreme fear periods have been when coins like Bitcoin have bottomed out, and extreme greed stretches has been when tops have tended to form.

Because of this, some investors consider very low sentiment values to be ideal buying opportunities. As Warren Buffet’s famous quote says, “be fearful when others are greedy, and greedy when others are fearful.”

The report notes, however, that while buying has been profitable in such times before, catching a falling knife like now isn’t an easy task.

BTC Price

At the time of writing, Bitcoin’s price floats around $21.1k, down 30% in the last seven days. Over the past month, the crypto has lost 30% in value.

The below chart shows the trend in the price of the coin over the last five days.

The value of Bitcoin has crashed down over the last few days | Source: BTCUSD on TradingView

Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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