Bitcoin (BTC) has stabilized at round $55,000 after dropping by $6,000 in a single day — however crypto market sentiment continues to be in shock.
According to the Crypto Concern & Greed Index as of Nov. 27, feelings are actually on the most fearful since late September.
Crypto sentiment dives into “excessive worry”
Concern & Greed, which takes a basket of things to compute a standardized sentiment rating for crypto markets from 1-100, presently sits at 21.
Friday took its toll on the metric, with the rating greater than halving in 24 hours from its earlier place of 47.
These two readings correspond to sentiment going from “impartial” to “excessive worry” — lacking out on the “worry” zone altogether.
Whereas an expected response, the upheaval obvious the emotional state of market individuals is turning into a supply of amusement for some acquainted names.
Investor and entrepreneur Alistair Milne famous that “excessive worry” is hardly an applicable response to BTC/USD buying and selling at $54,000. Certainly, the final time that the Bitcoin spot worth was at these ranges was in mid-October, Concern & Greed measured 78, in any other case generally known as an “excessive greed” territory.
“This a lot worry and we’re at $54k. Wild,” he summarized.
On Sept. 30, when the Index final hit 21/100, BTC/USD traded at round $43,800 on Bitstamp.
Funding charges see in a single day reset
As Cointelegraph reported, the newest and deepest part of the BTC worth correction got here as dealer habits on exchanges stayed curiously optimistic.
Funding charges, being optimistic regardless of Friday’s transfer, showed that market expectations have been for a swift restoration.
On the time of writing, nevertheless, plainly the journey to lows of $53,500 was sufficient to reset the temper — funding charges are actually again to regular and present no bullish bias.
As famous by analytics agency Delphi Digital this week, nevertheless, funding stays decrease relative to the primary half of 2021 — and this will likely sign a scarcity of general route.
“Funding charges proceed to be low on the futures markets. This might be an indication that the shorter-term leveraged merchants are nonetheless undecided directionally,” researchers told Twitter followers.
“Wanting again firstly of the yr, the bullish run-up has been accompanied by a considerably larger funding fee.”