Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
How to Trade Crypto During Periods of Extreme Fear and Greed

How to Trade Crypto During Periods of Extreme Fear and Greed

CoineditionCoinedition2024/07/09 13:07
By:Coin Edition
  • The Fear and Greed Index reads 27 as Fear engulfs the market. 
  • The German government and Mt. Gox repayments have turned investors bearish.
  • Santiment data said that traders have turned more bearish than in a year.

The crypto market has been riding a rollercoaster of emotions, swinging between neutral, fear, and greed over the past few weeks as volatility tightens its grip. Major cryptocurrencies have seen double-digit drops, suggesting that investors are cashing in on earlier gains.

According to the “Fear and Greed Index” by alternative.me , the last time market sentiment reached “Greed” was on June 24, fueled by the approval of spot Bitcoin ETFs by the SEC in January. However, Bitcoin’s subsequent drop to $58,000 from $63,000 quickly turned the mood bearish.

Despite briefly reclaiming the $60,000 mark, the index plunged to 30, signaling “Fear.” July opened to a neutral sentiment but quickly worsened as BTC dipped below $50,000.

The primary culprits behind this “Fear” are the German government’s selling pressure and the Mt. Gox creditor repayments. The German government’s recent move of 16,039 BTC (worth around $1 billion) triggered a price dip. However, they quickly reacquired 3,673 BTC, adding to the market’s volatility.

With Bitcoin struggling to stay above $58,000, online forums like X (formerly Twitter), Reddit, Telegram, 4Chan, and BitcoinTalk have been overflowing with bearish sentiment. The back-and-forth move was highlighted by Spot On Chain, which spurred market volatility. 

Santiment data reveals that such widespread fear, uncertainty, and doubt (FUD)) often signal a potential rebound, catching the majority off guard. Meanwhile, spot Bitcoin ETFs saw inflows of $294.8 million on Monday, according to Farside Investors data .

This “Fear and Greed” dance highlights the market’s volatility. With multiple factors at play, short-term price movements could surprise even seasoned investors. As of now, the Fear and Greed Index reads 27, indicating a persistent “Fear” in the market.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!