When the cryptocurrency fear and greed index falls to 29, a number below 30 indicating 'extreme fear', it feels like a bucket of ice water has been poured over all cryptocurrency investors. From yesterday's 34 to today's 29, a drop of 5 points in just one day is not only a shift in numbers but also a collapse of market confidence — the six major indicators including volatility, trading volume, and social media heat collectively sound the alarm, revealing the harsh truth behind the 'gambler's frenzy' in the cryptocurrency market.
The 'panic' in the cryptocurrency market is never without reason. This index, weighted by indicators such as volatility (25%), trading volume (25%), etc., essentially serves as a 'mirror' reflecting the irrational emotions of the market. When the price of Bitcoin fluctuates by 10% within a single day, when terms like 'plunge' and 'collapse' flood social media, and when institutional investors quietly withdraw while retail investors still believe in 'bottom-fishing' rumors, every drop in the panic index is a slap in the face of blind followers. Those who see cryptocurrency as a 'shortcut to wealth' will ultimately pay for their greed and ignorance — after all, a market lacking real support and relying solely on emotions and capital accumulation can rise as crazily as it can fall tragically.
Ironically, the panic itself is becoming an accomplice to 'cutting leeks.' When the index falls below 30, there is always someone who jumps out to shout, 'When others are fearful, I am greedy,' inciting retail investors to take over; and when the index climbs to 70, there will be others promoting, 'The bull market is here,' deceiving investors into chasing highs. Little do they know, in this market controlled by capital and emotions, ordinary investors have always been the fish on the chopping block. The so-called 'panic' and 'greed' are merely two means by which institutions harvest retail investors: using panic to force you to sell at low prices, and using greed to entice you into buying at high prices, repeating in cycles.
The panic index of 29, rather than being a risk signal, is more like a wake-up call. It reminds us that cryptocurrency has never been a 'safe-haven asset,' nor is it the 'wealth code' for ordinary people. For the vast majority of investors, rather than being anxious day and night over the ups and downs in the candlestick charts, it is better to stay away from this 'zero-sum game'—after all, true investment is about long-term holding of value, not gambler-style speculation amidst emotional waves. When the market is shrouded in panic, the best thing to do is not to 'bottom fish' or 'escape,' but to hit the pause button and ask yourself: Do you really understand this market? Can your money withstand such a 'roller coaster'?
The frenzy of cryptocurrency will eventually come to an end, and those investors caught up in panic and greed are destined to become the victims of this bubble burst. An index of 29 is not the end point; perhaps it is merely the prologue to the next grand drama of 'cutting leeks'—while the clear-headed have long turned and left the stage.