The Bitcoin fear and greed index signals fear on two consecutive days
The Bitcoin fear and greed index signals fear on two consecutive days
The indicator that shows the general mood towards Bitcoin-the BTC Fear and Greed Index-fell on the "fear" area on June 13th and 14th. The last time that the indicator remained two consecutive days in this area was in the first half of March.
A possible reason for the trend reversal could be the shock wave that the US stock exchange supervision SEC triggered on the cryptom market after submitting complaints against Binance and Coinbase. Bitcoin was well over $ 27,000 last Monday, but experienced some extremely volatile trading days and several months of deep stalls during the week.
is it time for "fear"?
The legal war that the US stock exchange supervision SEC led against Binance and Coinbase has affected the entire cryptocurrency market and, above all, the numerous old coins, which the authority described as non-registered securities.
Nevertheless, the measures by the regulatory authority also damaged the price of BTC, which after the announcement of the two lawsuits of $ 27,000 sank to a low of EUR $ 25,400. Although some of his losses have been caught up again, the damage seems to have already been done, at least according to the popular Bitcoin Fear and Greed Index, which tended downwards. es a on the day on which the American security supervisory authority submitted a lawsuit against coin base after she also had) she got into a "fear" zone for the first time in almost three months. The SEC lawsuit, in which it was claimed that several old coins should be considered securities, kept the indicator at a "fear" level for a day. However, on June 13th and 14th, he crashed again for no apparent reason, which caused the community to speculate that the panic triggered by the SEC had returned. The index is currently 46, while yesterday it was 45 (with both results in the "fear" area). The indicator showed either "fear" or "extreme fear" during most of the year 2022, mainly because of the numerous scandals and collapse. Some examples are the Terra crash, the bankruptcy of Three Arrows Capital and the FTX core melt. Nevertheless, investors began to change their mood to Bitcoin in early 2023 when the cryptoma market showed signs of relaxation. In contrast to some alternative coins, the US stock exchange supervision SEC has not (at least for the time being). The asset could become a major winner in the middle of the regulatory chaos, since investors could repel different digital currencies and concentrate on them. This thesis is supported by the Executive Chairman from Microstrategy-Michael Saylor-who believes that the market share dominance of BTC could achieve 80 %, while its price could exceed $ 250,000 if the trends remain the same. The recently announced US VPI numbers have also given investors hope that Bitcoin's evaluation could trigger a new rally. The increase in the consumer price index by 4 % compared to the previous year was slightly lower than the expected 4.1 %, which means that the Federal Reserve may be able to set up the key interest rate. A possible turning point could bring a breath of fresh air for companies, increase expenses and make cryptocurrencies more attractive investment options. If you keep these conditions in mind, it no longer sounds so scary to be in the "fear" zone. Finally, one of Warren Buffett's investment notices says that you should be greedy if others are afraid and vice . btc fear and greed, alternative.me
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