The cryptoverse has again found itself at the crossroads of falling market capitalization and sideways price movements, giving birth to a new wave of mixed emotions across the cryptocurrency community. This is also in light of many arguing that the cryptocurrency ecosystem is going through a cleansing process by removing money-hungry players. Mati Greenspan, Senior Analyst at eToro, gave his input on the same and claimed to have uncovered a growing fear in the community. He tweeted,
“The crypto fear index has just experienced it’s wildest swing since creation going from 83 to 16 in just one week. Here we can see it since the index was created last February. 0 = max fear 100 = max greed Draw your own conclusions!!”
The graph above is the Crypto fear and greed index and represents a sudden shift of emotion within the crypto-community as Bitcoin leads the two-week long bear market. What comes as a shock however, is the drop from 83 (high level of greed) to 16 (high level of fear).
Moreover, back in Jan 2019, the demise of the crypto-winter had seen the birth of new projects and token offerings, precipitating the involvement of bad players in the cryptocurrency market as well. BTC’s inability to breach the $13,600 mark has sparked fear into investors, presenting a unique buying opportunity for many.
Additionally, this development has also led speculators to share that the rising greed sentiment has signaled legacy investors of an oncoming correction. While unstable market conditions provide ample space for fear in terms of investments, the drop in crypto’s overall market cap has highlighted the general public’s irrational reaction to sudden drops.
While fear and greed go hand-in-hand with crypto’s trading value, most prominent leaders in the space including Vitalik Buterin and Charles Hoskinson have clearly mentioned that their ultimate goal is crypto’s wider adoption. Most present-day crypto-ecosystems are in fact, focused on delivering more use cases, rather than just increasing their trading value.