😨 Crypto Market - Extreme Fear
The Fear and Greed Index for cryptocurrencies has dropped to 20, signaling a market dominated by extreme fear sentiment.
This is the lowest level recorded since September 2024 and reflects fear after all the movement in Bitcoin's price.
Factors driving the fear:
Correction of Bitcoin and altcoins, with memecoins recording considerable losses;
Regulatory uncertainty in the US, with new developments regarding ETFs and potential tax restrictions;
Massive liquidations of leveraged positions, generating short-term selling pressure.
But is it an opportunity or extreme risk?
Historically, moments of extreme fear often precede recoveries in the market, as they represent strategic entry points for long-term investors.
As Buffett says:
Buy when cannons roar and sell when violins play
