Despite the recovery in the cryptocurrency prices and the overall stability, the crypto sentiment is not showing very good results. On the Fear and Greed Index, the crypto sentiment still indicate extreme fear.
After all the chaos caused by a coronavirus in the crypto market, now it seems that circumstances are now getting better in terms of recovery of Bitcoin and altcoins.
This contrasting situation compels one to ponder whether this is the time to be greedy when the market is fearful, or this extreme fear is indicating another massive sell-out.
As it is a fact that digital currencies are speculative assets, much of the value of cryptocurrencies are deprived of the hype and predictions, and especially the investor sentiment is of prime significance.
Crypto sentiment down despite high market
Due to the significance of investor sentiment, Fear and Greed Index was developed in such a way that it tracks the sentiments of investors, in order to analyze that either the sentiments are inclined towards extreme fear or extreme greed.
The index provides an accurate representation of the state of emotions of the market and has been employed as a trading strategy.
It's interesting to see how Bitcoin has recently reached $6700 but market sentiment is still extremely fearful$BTC #Crypto #Bitcoin pic.twitter.com/IgsVzjmqN1
— Rekt Capital (@rektcapital) March 24, 2020
The notion of taking a position against the market can oftentimes be rewarding. Warren Buffett says that it is wise to be fearful when others are greedy and greedy while others are fearful.
With the current state of the market and the index, it would be wise to take advantage of the situation and buy as much Bitcoin one can afford. The fear that has taken the whole world into grip is here to stay for a bit on the crypto sentiment charts as well.
As it is the first time in human history that there is a lockdown all across the globe. The whole world is going through an economic and health crisis. Times like these crash the economy, so it’s better to be cautious while considering any sort of investment.
