Crypto market sentiment has dropped into the far negative once more. This has been one in the making ever since the Terra crash had begun and investors had scrambled to leave the market. A culmination of this and speculations that the market is headed into one of the longest bear trends ever recorded has now seen sentiment fall to levels not recorded since 2020.
In The Extreme Fear Region
Now, the crypto market sentiment has not been positive for a while. Most of the last two months have been spent in the fear territory and April had closed out in extreme fear. Nevertheless, the scores on the Fear & Greed Index had remained somewhat high until the LUNA crash. This has sent the market into extreme fear overdrive as the Fear & Greed Index now displays a score of 12, the lowest it has been in two years.
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More notable is the fact that the index had touched as low as 8 last week. This makes it the second-lowest score that has ever been recorded on the index, the lowest being a score of 5 in 2018. What had followed from its May 17th lows was a bit of a recovery but even that had not held up well. As of the time of writing, the index has lost another point and is now sitting at 11.
Market sentiment falls to extreme greed | Source: Arcane Research
This extreme fear reading mirrors how investors are feeling when it comes to investing in cryptocurrencies at the moment. Simply put, investors do not want to put money into the market and this is evidenced by the exchange inflows that have been rocking the space. These exchange-wide sell-offs only contribute to the already declining sentiment, sending digital assets further down.
Is It Time To Buy Crypto?
Historically, when the crypto market sentiment has declined this much, it can be seen as an opportunity to get into the market right before recovery. This has worked out many a time for investors. But there have also been times when…
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