According to Alternative.me’s cryptocurrency trend “Fear and Greed” indicator, the digital asset market has reached a condition of “extreme fear.” The primary reason for the significant decrease in the indicator’s value is the recent Bitcoin fall below $40,000, which was considered unachievable during the March cryptocurrency market rally.
Panic over the cryptocurrency community
As Bitcoin started to lose a significant portion of its value, short-term traders began to actively sell their holdings, adding even more selling pressure on the digital gold and causing panic among the cryptocurrency community.
According to IntoTheBlock stats, long-term investors are holding onto their positions and purchasing more crypto on dips. Investors holdings have increased by 2 million BTC in recent weeks. On the other hand, a lot of traders and short-term investors are quickly leaving the market because they think it will go down even more in the near future.
Analysts focus on trade volume and market momentum in addition to average volatility. When Bitcoin is falling, it is called greedy since purchasing volumes rise during trending markets and vice versa.
Bitcoin is trading at $40,336 right now, after rebounding from $39,187 in a few hours. This means that a lot of people are buying bitcoins for around $39,000.
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