Bitcoin (BTC) traders have been gripped by fear, as reflected in the latest BitDegree Crypto Fear & Greed Index reading.
The Fear & Greed Index is a tool that measures the mood of the BTC and the overall crypto market using four key metrics: market volatility, market momentum, social media, and BTC dominance. A score above 60 indicates a greedy market, below 40 signals fear, and values in between represent a neutral sentiment.
As of now, July 5, the index stands at 29, entering the "fear" zone. The last time the score was this low was in January 2023.
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Over the last few days, the index had been in neutral territory. However, today, the sentiment has changed as Bitcoin's price declined significantly, dropping below the $55,000 mark.
If the index continues to slide further into the fear zone, potentially reaching extreme fear levels, it might signal an approaching bottom for Bitcoin's price. However, historically, high fear levels have sometimes indicated buying opportunities, as Bitcoin often moves contrary to market expectations.
At the time of writing, Bitcoin's price hovers around $54,248, marking a 7.65% drop in the last day and an 11.88% decrease over the past week.
Overall, this price dip has heightened fear among traders, underscoring the volatility and unpredictability of the crypto market.
In other news, the US government recently transferred 3,940 BTC to a Coinbase Prime wallet.
