‘Extreme Fear’ Hits Bitcoin for the First Time in 3 Months as BTC Plummets

The asset nosedived by $10,000 in 20 days. The quickly deteriorating price landscape across the entire market has inevitably impacted how investors view it, with fear taking over. Data from Alternative.me shows that the popular Bitcoin Fear and Greed Index has tanked to its lowest position in three months. The good news is that the last time it was this negative, BTC broke out. Extreme Fear Takes Over The idea of the index is to showcase the highly emotional nature of the cryptocurrency market, which, as the graph below will demonstrate, tends to fluctuate almost as rapidly as prices. It gathers data from several key sources, including overall market volatility, market momentum and volume, social media bias, and BTC’s dominance over altcoins. Surveys were also included in the past but have been paused for a while now. The end results range from 0 (extreme fear) to 100 (extreme greed). Since price moves are one of the main sources, the metric skyrocketed in late August and mid-September to above 70 (or close to extreme greed territory). However, as Warren Buffett has said more than once, investors should be fearful when others are greedy, and this narrative proved correct once again...