8
It seems that the Fear & Greed indicator has touched its lower limit for the fourth time in history today, we have reached an Extreme Fear level of 8... which could indicate the approaching end of the Bear Market, however, the complexity of the crypto market that we currently have is nothing like what we have seen before.
The FEAR sentiment is not channeled by BTC as it was in the past but by the possibility that what some thought was risk-free in profiting from stablecoins poses more uncertainty and fear than expected after the LUNA/UST disaster...
Yes, dear friends, there is nothing "safe", and I am a bit annoyed by all the crap I see in the news regarding how dangerous it is to invest in crypto when "you have no idea what crypto means". The death spiral is not only a possibility in crypto but it is a phenomenon that occurs in any market if certain conditions are met.
Going back to the value of the Fear & Greed Index, I think that what it is reflecting is precisely that fear of not being able to trust on stablecoins, in fact, it is the STABLECOINS that have lost market capitalization, much more than BITCOIN:
(Source)
And that is also seen in the dominance of BITCOIN that has grown and maintained since the fateful event of LUNA and not so with the dominance, for example, of TETHER:
BTC Dominance:
USDT Dominance:
We'll see if this is the bottom, I want to believe that we are not far away although we need to recover some lost confidence.
If there is any good thing that we could take from these fateful episodes, it is that more BITCOINERS are being created every time, which, in my opinion, is a good thing.
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https://twitter.com/thecryptorunner/status/1526651079999598592
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At some point people will realize that Bitcoin is safer than stablecoins and a better hedge against inflation over years. These factors will imo drag investors back into the volatile crypto assets from what now appear to be risky stables.
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yep, volatility is not a problem in my opinion, the problem is the dead of the token as it happens with LUNA and UST
Yeah, losing all your investments in an asset if you happen to be AFK at the wrong moment for a couple of days!
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Been there done that.
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Talking about Steem? :P
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Never knew there was such a thing as a Fear and Greed Indicator. Love it ^^
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This is true and logical. All currencies know ups and downs. Through the LUNA currency crisis, we saw the HIVE rise to $0.53 with the stability of HBD, but people are afraid of fluctuations in the currency market unfortunately.
So in your opinion the bitcoin will not go back under 27000€? And in general coins will not go lower in general? What's your prediction about the bull market which you think is coming now?
I think the current level of prices is strong however it may fall towards 20k which is strong support as well.
There are some analysts who mislead people and say that Bitcoin will rise to $ 100,000 by the end of the year. Doesn't know that there are fluctuations, wars and strained relations between countries? I don't know how they analyze?
Everything can happen my friend
what can I say ? I like bottoms :P
I definitely expected all the critics to have a field day with 'crypto is dead' sentiments. Not surprised that the sentiments are the way they are
Events like this is sure to scare many people away. The incident was less expected but the reaction is. Having the confidence required at this stage is a thing of choice.