Bitcoin value action is simply 20% from incomparable highs, however the market has reentered "extreme fear" for the primary time since $43,000.
Bitcoin (BTC) has stabilised at around $55,000 when dropping by $6,000 during a single day — however crypto market sentiment remains in shock.
According to the Crypto concern & Greed Index as of Nov. 27, emotions are currently at the foremost fearful since late Sept.
Crypto sentiment dives into "extreme fear"
Fear & Greed, that takes a basket of things to reason an even sentiment score for crypto markets from 1-100, presently sits at 21.
Friday took its toll on the metric, with the score over halving in 24 hours from its previous position of 47.
Those 2 readings correspond to sentiment going from "neutral" to "extreme fear" — missing out on the "fear" zone altogether.
While an expected reaction, the upheaval apparent the emotional state of market participants is turning into a supply of amusement for a few acquainted names.
Investor and entrepreneur Alistair writer noted that "extreme fear" is hardly an applicable reaction to BTC/USD trading at $54,000. Indeed, the last time that the Bitcoin damage was at those levels was in period, concern & Greed measured 78, otherwise called an "extreme greed" territory.
"This abundant concern and that we are at $54k. Wild," he summarized.
On Sept. 30, once the Index last hit 21/100, BTC/USD listed at around $43,800 on Bitstamp.
Funding rates see overnight reset
As Cointelegraph rumored, the most recent and deepest section of the BTC value correction came as bargainer habits on exchanges stayed curiously optimistic.
Funding rates, being positive despite Friday's move, showed that market expectations were for a swift recovery.
( William Suberg, Cointelegraph, 2021)