The behavior of all financial markets is influenced not only by fundamental conditions, but also by psychological conditions and sentiment in the market over shorter or longer periods of time. Historically, crypto markets have stood out by being highly emotional and volatile.
Alternative Me is one of several players who daily update their fear and greed index, the Crypto Fear & Greed Index. The index can be used to protect yourself from your own emotional overreactions, which tend to turn out in one of two ways:
Alternative.me continuously analyzes the sentiment in the Bitcoin market and processes the numbers into a simple gauge from 0 to 100. Zero means “Extreme Fear”, while 100 means “Extreme Greed”.
As we write this article, on Sunday, October 22, the index stands at 53, which means a neutral state, that neither fear nor greed has any upper hand. But on the day, Saturday, October 21, the index stood in 63, that is, sentiment was in a GREED terrain. This was in connection with the fact that the same week it was reported that the US stock exchange authorities, the SEC, had approved applications to facilitate ETFs, which are an investment instrument, linked to the Bitcoin spot market. Now it turned out that this message was wrong, which perhaps explains that the market has calmed down again. At the same time, most observers expect that these ETF applications will be approved before long. Perhaps there was no reason to let fear take over.
Now it is not at all that there is only isolated news that affects the sentiment of fear and greed. It might as well be the evolution over time. Last week, for example, the index stood at 45, and in September at 43, i.e. in both cases in a fearful terrain. But by no means close to what one could experience in 2022, when the major financial scandals characterized the crypto markets.
If you want to keep track of how this index changes from day to day, then below we have built in Alternative Me's index.
How to sow Alternative Me its Fear & Greed index together? First, it might be good to remind you that Alternative Me's index is so far based solely on Bitcoin, but several separate indexes are on the way.
Factors affecting the index:
So equipped with this knowledge, how do you intend to relate, the next time market sentiment is dominated by fear or greed?
The behavior of all financial markets is influenced not only by fundamental conditions, but also by psychological conditions and sentiment in the market over shorter or longer periods of time. Historically, crypto markets have stood out by being highly emotional and volatile.
Alternative Me is one of several players who daily update their fear and greed index, the Crypto Fear & Greed Index. The index can be used to protect yourself from your own emotional overreactions, which tend to turn out in one of two ways:
Alternative.me continuously analyzes the sentiment in the Bitcoin market and processes the numbers into a simple gauge from 0 to 100. Zero means “Extreme Fear”, while 100 means “Extreme Greed”.
As we write this article, on Sunday, October 22, the index stands at 53, which means a neutral state, that neither fear nor greed has any upper hand. But on the day, Saturday, October 21, the index stood in 63, that is, sentiment was in a GREED terrain. This was in connection with the fact that the same week it was reported that the US stock exchange authorities, the SEC, had approved applications to facilitate ETFs, which are an investment instrument, linked to the Bitcoin spot market. Now it turned out that this message was wrong, which perhaps explains that the market has calmed down again. At the same time, most observers expect that these ETF applications will be approved before long. Perhaps there was no reason to let fear take over.
Now it is not at all that there is only isolated news that affects the sentiment of fear and greed. It might as well be the evolution over time. Last week, for example, the index stood at 45, and in September at 43, i.e. in both cases in a fearful terrain. But by no means close to what one could experience in 2022, when the major financial scandals characterized the crypto markets.
If you want to keep track of how this index changes from day to day, then below we have built in Alternative Me's index.
How to sow Alternative Me its Fear & Greed index together? First, it might be good to remind you that Alternative Me's index is so far based solely on Bitcoin, but several separate indexes are on the way.
Factors affecting the index:
So equipped with this knowledge, how do you intend to relate, the next time market sentiment is dominated by fear or greed?
