What Does the Fear and Greed Index Tell Us about the Market?
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Dear subscriber,
We’ve talked about the Bitcoin Fear and Greed in the past, and it’s importance as a metric for market sentiment. Crypto markets tend to be quite emotional, more so than stock or commodity markets. Whole days can be made on a simple tweet, a whiff of good news, or an ill-timed conference.
The Fear and Greed index has now been in a prolonged state of fear.
Apart from a brief touch of greed in late March, most investors in the market are operating from a place of pessimism. Some of this is probably reflective of broader economic trends, which have also turned to the downside.
Take a look at the last three months.
What does this mean for you?
First, this might be a fantastic buying opportunity. As I often say, this isn’t a newsletter chocked full of financial advice. It’s more of a chronicle. You should always assess your own risk before you invest in any asset.
But…
This long drag on the market has taken out a lot of investors. People who came to crypto for a quick buck have mostly left. They aren’t interested anymore, and they aren’t buying anything.
And that presents opportunity.
Personally, I’m feeling quite bullish. I started to DCA (dollar cost average) Bitcoin five months ago, and I buy a little every day. I haven’t sold a single satoshi, or any other dollar I’ve brought into the market. I’m holding, adding, and wishing I could get my hands on more.
Remember, when the fear is high, that’s the best time to be bullish. When the greed is high, that’s the best time to bearish. True sharks do the opposite of the school of fish they’re hunting. They are contrarian investors.
What do you think? How are you feeling about the market right now?
Plus…
We had a great conversation with the CEO of Folks Finance last night on The Crypto Connection. Check out the recording embedded in this tweet here:
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.