{"id":419075,"date":"2020-03-24T17:00:04","date_gmt":"2020-03-24T17:00:04","guid":{"rendered":"https:\/\/shenyangcang.com\/?p=419075"},"modified":"2020-03-24T15:52:33","modified_gmt":"2020-03-24T15:52:33","slug":"despite-cryptocurrency-market-recovery-sentiment-is-still-extremely-fearful","status":"publish","type":"post","link":"https:\/\/shenyangcang.com\/news\/despite-cryptocurrency-market-recovery-sentiment-is-still-extremely-fearful\/","title":{"rendered":"Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful"},"content":{"rendered":"

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<\/a>, Bitcoin and altcoins have begun to recover.<\/span><\/p>\n

But although cryptocurrency prices are recovering across the board, according to the crypto market Fear and Greed Index<\/a>, sentiment is still in extreme fear. Does this mean it\u2019s a time to be greedy while the market is fearful, or is the fear so extreme that taking a new position is dangerous?<\/span><\/p>\n

Cryptocurrency Market Rebounds, But Sentiment Remains in the Gutter<\/h2>\n

Because cryptocurrencies are speculative assets, and much of their valuations are derived from hype and promise, investor sentiment is especially important.<\/span><\/p>\n

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

Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit\u00a0<\/a><\/strong><\/em><\/p>\n

The index is typically so accurate in representing the emotional state of the market, that it has been used successfully as a trading strategy<\/a>.<\/span><\/p>\n

Oftentimes, taking a contrarian position against the market, enormous profits can be made. As the famous Warren Buffett saying goes<\/a>, it is wise to be fearful while others are greedy, and greedy when others are fearful.<\/span><\/p>\n

And with the market in such extreme fear, that old adage would suggest that now is the time to buy Bitcoin<\/a> with everything you\u2019ve got, as fear as never been more extreme.<\/span><\/p>\n

Not just within the crypto market, but fear is currently everywhere in the world. The coronavirus is a black swan event<\/a> that\u2019s caused such mass disruption and death, that the entire world is terrified of not only the pandemic itself, but the potential economic fallout that could last for decades as the world recovers.<\/span><\/p>\n

Because fear is so extreme, both inside and outside of the cryptocurrency market, it\u2019s wise to stay extra cautious when considering any investments or trades right now, and additional risk management strategies should be applied.<\/span><\/p>\n

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It's interesting to see how Bitcoin has recently reached $6700 but market sentiment is still extremely fearful$BTC<\/a> #Crypto<\/a> #Bitcoin<\/a> pic.twitter.com\/IgsVzjmqN1<\/a><\/p>\n

— Rekt Capital (@rektcapital) March 24, 2020<\/a><\/p><\/blockquote>\n