Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful

Now that the dust has settled on the historic, record-breaking collapse the cryptocurrency market experienced earlier this month alongside the stock market, gold, and many other traditional assets, Bitcoin and altcoins have begun to recover.

But although cryptocurrency prices are recovering across the board, according to the crypto market Fear and Greed Index, sentiment is still in extreme fear. Does this mean it’s a time to be greedy while the market is fearful, or is the fear so extreme that taking a new position is dangerous?

Cryptocurrency Market Rebounds, But Sentiment Remains in the Gutter

Because cryptocurrencies are speculative assets, and much of their valuations are derived from hype and promise, investor sentiment is especially important.

And because it is such an important factor, a Fear and Greed Index was designed to track investor sentiment and help to make sense out of that sentiment reaching extremes of fear or greed.

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