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Crypto Sentiment Fluctuations: August Snapshot

Martin Walker
Aug 21, 2023 at 03:45 pm

The BTC Fear and Frenzy Gauge signaled a reading below 40 over the past quadruple days, an occurrence unseen since the inception of January.

The recent nosedive in the cryptocurrency market wiped away portions of the excitement amidst investors, a substantial number of whom were anticipating a resurgent bullish surge as they eagerly joined the trend in droves over the previous several months.

The renowned Bitcoin Fear and Frenzy Gauge stepped into the realm of "Apprehension" on August 18 (the same day BTC plummeted to almost $25,000), a realm it has inhabited ever since. The most recent instance of the gauge emitting an "Apprehension" signal for four uninterrupted days dated back to January, back when the primary digital asset held a value below $20K.

One can confidently assume that the overarching reawakening of the cryptocurrency market since the year's inception, particularly the escalation in bitcoin's value, has been the pivotal driving force behind the BTC Fear and Frenzy Gauge consistently maintaining its position within either the "Neutral" or "Greed" domain over the past half-year duration.

Despite the optimism that a fresh bullish surge was imminent (fueled by the encouraging reports surrounding BlackRock's submission for launching a spot BTC ETF in the USA and other unfolding developments), the market underwent a substantial correction. Bitcoin descended to a nadir of $25,300 across various exchanges, including Coinbase, over a span of two months. Subsequently, it recuperated a fraction of the losses in the ensuing days and is presently trading at approximately $26,000.

As somewhat anticipated, the BTC Fear and Frenzy Gauge signaled "Apprehension" on August 18 and struggled to rebound to the "Neutral" or "Greed" regions in the subsequent trio of days, thus mirroring the prevailing pessimistic sentiment prevailing among investors.

Fear and Greed Index for BTC, Reference: alternative.meFear and Greed Index for BTC, Reference: alternative.me  

The most recent instance of the gauge dwelling within that realm for an unbroken stretch of four days took place in mid-January this very year, shortly before bitcoin embarked on a miniature bullish spree, ultimately surmounting the $30K threshold.

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