The crypto market is falling apart to extreme fear, is it time to buy?

The crypto market is falling apart to extreme fear, is it time to buy?

Crypto still withstands all attacks. It, like other financial markets, has been subject to great stress due to political tensions that continue to rage. However, investors found solace in digital assets that continued to stand. Although the yields were not high, there was no excessive price slip. But that did not help the market mood much.

The crypto market is largely driving investor sentiment. Depending on where the sentiment is distorted, it can be an indicator of where the market is going. Currently, the market mood is very negative, as evidenced by the index of fear and greed.

The market is falling into extreme fear

The fear and greed index is an index that measures market mood through a number of factors. Using this, it gives a number on a scale that shows how investors feel in the market. This week was not good for the crypto market in terms of sentiment because it fell deep into the territory of fear. After spending most of last week in neutral territory, the Fear and Greed Index has not pointed a finger at Extreme Fear.

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The fall in this territory is the result of falling prices. After the weekend, bitcoin, which managed to recover to the level of 40 to 44 thousand dollars last week, started to fall. By the time the new week began, digital assets had fallen below $ 40,000 again, taking the rest of the market with them. The feeling quickly became negative, putting the index in the territory of extreme fear.

Market goes into extreme fear | Source: Alternative.me

It seems that the month of March will follow in the footsteps of February, which closed the month in Fear. Currently, the crypto market has a rating of 21 on the Index of Fear and Greed. This may not be the lowest index it has received lately, but it is still a low number.

Is it time to fill in cryptocurrencies?

Trying to time the market can often be a futile endeavor given how highly unstable cryptocurrencies can be. But that doesn’t mean investors can’t look at indicators to try to determine the best time to enter the market. One of the indicators that investors often use to determine whether they should enter the market is the index of fear and greed.

Related Reading | Crypto markets recovered slightly after the fall of the weekend

In the world of investing, there is a saying “buy when there is blood on the streets”. This suggests that investors should buy assets when the market is in decline. One indicator that can indicate a good time to buy is when others are afraid and wary of entering the market. It is believed that this is the time when people start filling their bags and as such the value of the property will start to grow.

The crypto market is falling apart to extreme fear, is it time to buy?

Crypto total market cap below $1.7 trillion | Source: Crypto Total Market Cap on TradingView.com

However, this cannot always go according to plan because sometimes even buying digital assets when the market is in decline does not guarantee that there will be a turnaround. The crypto market is unpredictable with its own mind and sometimes when investors believe that prices can’t go further down, they do. So, the best time to buy is subjective and based on the experience of each investor.

Featured image from TED, chart from TradingView.com



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