On July 8, the Bitcoin Fear and Greed Index reached 20, which is the highest position it has attained in the previous two months.
Indeed, the multivariate crypto market mood research shows that this is the highest the measure has been since May 7.
The indication is headed toward the “fear” level after spending a lot of time in the “severe fear” level, according to a notice released by Arcane Research on July 5.
If traders’ attitudes are any indicator, cryptocurrency values may recover from one of their worst quarters ever, or at the absolute least, stop declining.
Fear and Greed Index
In traditional markets, a gauge of investor fervor is called the Fear and Greed Index. It considers a variety of factors, such as volatility, momentum, and demand.
It specifically seeks to identify if traders are too bullish (represented by “fear”) or bearish (represented by “greed”), and it also considers a variety of other factors, including social media trends and Google search phrases.
Although the 30-day volatility has remained high, Arcane Research reports that the seven-day volatility in Bitcoin (BTC) has dropped to its lowest level since the beginning of April.
A relatively “uneventful July following a busy quarter in the bitcoin market and the beginning of the summer,” the analysts added, would not surprise them.
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Mood of the Bitcoin market changed
The value of the largest digital asset in the world fell by more than 60% during the second quarter as hawkish central banks and a slew of high-profile crypto explosions devastated confidence.
On July 6, Bitcoin briefly surpassed the $20,000 barrier before falling down below it.
But since then, the primary digital asset has increased, reaching a peak of $22,000 on July 8 during the early trading hours.
In reaction, WazirX noted that the mood of the Bitcoin market changed:
Bitcoin just crossed the $22,000 threshold for the first time in three weeks as a result of the traditional and cryptocurrency markets favorably reacting to the U.S.
Federal Reserve’s guarantee that worries about a recession are exaggerated.
Thus, Bitcoin may be on course to record its biggest weekly rise in the previous nine months.