Will October bring fear to crypto for 200 straight days?

Data shows that the crypto market has been scared for 171 days already, will the streak continue in October and reach 200 days?

Crypto Fear and Greed Index points to an extremely fearful market

According to the latest weekly report from Arcane Research, the crypto market has continued to show a sense of fear since April this year.

The “Fear and Greed Index” is an indicator that measures the general sentiment among investors in the cryptocurrency market.

To represent the sentiment, the metric uses a numerical scale that goes from zero to one hundred. All values ​​of the index greater than 50 suggest that the market is greedy, while those below the threshold suggest fearful investors.

In these main sentiments, there are two zones that have historically been particularly important to the prices of coins like Bitcoin. These are the “extreme greed” and “extreme fear” regions, and they occur at values ​​higher than 75 and below 25, respectively.

The relevance of the extreme sentiments is that peaks have usually taken place in the former type of periods, while troughs have formed in the latter.

Now, here is a chart showing the trend of the Crypto Fear and Greed Index over the past year:

The value of the metric seems to have gone down in recent days | Source: Arcane Research's The Weekly Update - Week 37, 2022

As you can see in the graph above, the Crypto Fear and Greed Index recently saw a small spike when the Ethereum merger came around, but once investors realized it was a sell-on-the-news event, sentiment fell back sharply. .

Two days ago, when the report came out, the indicator had a value of 23, indicating an extremely fearful mentality. Since then, it hasn’t budged much as today’s value is still 22.

The crypto market has been in a state of fear since the month of April, making it a continuous streak of such sentiments for 171 days now.

Back during the relief rally in August, the indicator came close to breaking out of this region and ending what has become the longest streak of fear in the index’s history. But before investors could embrace greed, the rally ended and sentiment immediately plummeted.

For now, it is unclear when the race will finally end. If it continues and goes through October, crypto investors would have observed 200 days of fear.

BTC price

At the time of writing, Bitcoin’s price is hovering around $19.2k, down 5% in the last seven days. Over the past month, the crypto has lost 10% in value.

Looks like the price of the coin has been mostly moving sideways in the last few days | Source: BTCUSD on TradingView

Featured image from Thought Catalog on Unsplash.com, charts from TradingView.com, Arcane Research