Fear has taken over the Bitcoin (BTC) market and digital assets, according to the Fear and Greed Index created by CoinMarketCap.
This indicator evaluates several factors such as volatility and market volume, reflecting the prevailing sentiment of uncertainty among people. trader And an inverter.
When an index is “scared” as it is now, market participants tend to sell positions to reduce risk. This indicates a greater tendency to be cautious, in contrast to the level of “greed” that prevailed in July and August.
The index chart below shows the dramatic changes. After remaining in the greed zone, it has fallen sharply since September, reaching 27 points, the highest level since April. A reading of less than 25 points indicates “extreme fear” And it suggests investors are overly worried.
This dynamic is clearly visible in the price of BTC. It fell below $105,000, marking an 8% decline over the past 7 days.. Most cryptocurrencies have followed a bearish trend, for example, Ethereum (ETH) fell by 14% and Solana (SOL) by 18% during the same period.
Fear increases selling pressure and increases volatility, leading many investors to prioritize capital preservation over new positions.
However, as explained by Criptopedia, the education section of CriptoNoticias, there are strategies for those who maintain a bullish view on Bitcoin: dollar cost averaging method (DCA) – It consists of acquiring a fixed amount of BTC at regular intervals and can be accumulated without predicting the market. If positive forecasts come true, such a decline could precede a significant recovery.
