Housing Demand Surges Despite ‘Extreme Fear’ on Bitcoin Fear and Greed Index
The Bitcoin fear and greed index reported “severe fear” on Wednesday, but this could be a buying opportunity for brave investors, since the fearful have sold into a sinking market.
A high reading on the greed side of the index, on the other hand, may foreshadow a looming correction when investors are hungry for more gains in a rising market.
Although the Bitcoin market does not rise or fall at random, it does have an emotional component, particularly among retail investors who follow a rising market after acquiring FOMO (Fear Of Missing Out) or dump their holdings in a panic when the market falls.
Part of the rationale for Bitcoin’s recent wild price swings is because of this.
When the market plummeted, most significant and institutional investors did not sell, and some significant corporations, such as MicroStrategy, bought the drop to boost their shares.
Bitcoin is viewed as a buy-and-hold asset by Bigfoot investors, who are unconcerned about daily price changes or even a dramatic fall.
Bitcoin’s price hovered about $40,000 on Wednesday, a week after falling over 50% from its all-time high. After Washington revealed measures to boost regulation and improve tax compliance, the world’s largest cryptocurrency by market cap plummeted.
The Federal Reserve, the country’s central bank, has announced that a study paper describing the merits and hazards of creating a digital currency in the United States will be released this summer. Some see this as a direct threat to Bitcoin’s future, as Uncle Sam tries to recover its currency-issuing monopoly.
After noting the vast quantity of electricity required to run the activity 24 hours a day, China prohibited the usage of Bitcoin and shut down mining operations. However, Bitcoin rose when Elon Musk claimed he spoke with miners in North America to propose the usage of renewable energy sources.
Following the latest shakeout, the crypto market appears to be on the point of diverging. Bitcoin and Ethereum are in first place, followed by all other cryptocurrencies, including Dogecoin.
Too many people pay too much attention to Dogecoin, a parody of Bitcoin launched in 2013 that never reached $1 in value and fetched $0.34 in early trading Wednesday.
Dogecoin is sometimes plugged by shrewd CEOs like Tesla’s Elon Musk and Mark Cuban, not as an investment but as a sure-fire way to gain media attention.
Musk proclaimed himself “Dogefather” to. This is a brief summary.