Bitcoin (BTC) has stabilized at around 55,000 dollars after falling by 6,000 dollars in a single day – but the sentiment in the crypto market is still in shock.
According to the Crypto Fear & Greed Index, as of November 27, emotions are now at their most terrible since the end of September.
Crypto-sentiment dives into “extreme fear”
Fear & Greed, which requires a basket of factors to calculate a standardized sentiment score for crypto markets from 1-100, is currently 21.
Friday took its toll on the metric, the score was more than halved in 24 hours from the previous position of 47.
These two measurements correspond to emotions that go from “neutral”[ads1]; to “extreme fear” – to miss the “fear” zone completely.
Mens en expected reaction, the upheaval apparently the emotional state of market participants is becoming a source of entertainment for some famous names.
Investor and entrepreneur Alistair Milne noted that “extreme fear” is hardly an appropriate response to BTC / USD trading at $ 54,000. In fact, the last time the Bitcoin spot price was at these levels in mid-October, Fear & Greed 78 measured “extreme” greed »territory.
“So much fear and we’re at $ 54k. Wild,” he said summarized.
On September 30, when the index last hit 21/100, BTC / USD traded at around $ 43,800 on Bitstamp.
Financing interest rates are seen to be reset overnight
As Cointelegraph reported, the last and deepest phase of the BTC price correction came when trading habits on stock exchanges remained strangely optimistic.
Financing rates, which were positive despite Friday’s move, showed that market expectations were a rapid improvement.
Related: Bitcoin reverses ‘bear market’ to $ 53.5,000 as Pfizer wins new panic over coronavirus ‘Nu’ variant
At the time of writing on Saturday, however, it seems that the trip to 53,500 dollars was enough to reset the mood – financing rates are now back to normal and show no bullish bias.
As noted by research firm Delphi Digital this week, however, funding is still lower compared to the first half of 2021 – and this may signal a lack of overall direction.
“Financing rates continue to be low in the futures markets. This may be a sign that short-term leveraged traders are still uncertain about the direction,” say researchers. told Twitter followers.
“Looking back at the beginning of the year, the bullish run-up has been accompanied by a significantly higher funding rate.”