The context: the Fear and Greed index, or index for fear and avidity in French, is a highly used index in the crypto sector which allows the feeling of investor and traders on the market. The news falls while the Bitcoin course still faces a high volatility of the market, triggered by the current macroeconomic conditions. Cryptocurrency No. 1 has dropped in particular 11.4 % since the beginning of the year, reflecting fear and generalized uncertainty within the markets. The Fear and Greed index altered by a recenceboard? In his latest post on X, analyst Lark Davis highlighted an interesting trend concerning the Fear and Greed index. As a reminder, this indicator of feeling measures emotions of the crypto market on a scale of 0 (extreme fear) at 100 (extreme greed). On April 3, he dropped to a hollow of 25, indicating increased anxiety among investors, even if the Bitcoin price remained around $ 80,000. In addition, its previous value of 28 also indicated a substantial fear among market participants. Index of fear and greed in the crypto. Source: Alternative.Me nevertheless, according to Davis, this feeling turned out to be moved, given the performance of the Bitcoin course. He thus noted that the decline of the index contrasts with the conditions of the market six months earlier; Indeed, despite a Bitcoin course at 65,000 dollars, the index then displayed a neutral value. “This is what is called the” recess bias “, and you can take advantage of it,” read the analyst’s post. To clarify, the recess bias refers to the trend of investors or traders to give more weight to recent events or information when they make decisions while ignoring trends or longer -term data. This psychological bias often leads to a surrection to short -term market movements, such as a sudden increase in the price or a crash. “This is why we observe higher fear values today at 80,000 dollars, that yesterday at 65,000 dollars,” said David. He thus suggested that the fear observed on the market is not entirely justified and that reactions to short -term fluctuations are often more extreme than necessary. This coincides with the new Bitcoin fluctuation in the face of President Trump’s plans for customs duties and fears of a possible recession. Thus, although the BTC remains relatively stable compared to traditional markets, its moderate decrease has nevertheless aroused doubts about its stability and its long -term potential. Michael Saylor, president of Strategy (ex microstrategy), notably stressed that short -term volatility does not reflect the long -term potential of Bitcoin. “Bitcoin is the most volatile because it is the most useful,” he said. Saylor has explained that the volatility of Bitcoin is largely due to its liquidity and 24/7 availability, which means that this asset is more likely to undergo rapid sales during market panics. However, Saylor has also reiterated that, although Bitcoin behaves like a short -term risk asset, its long -term value is not affected by these fluctuations, thus reinforcing its role of reserve of value. In addition, Arthur Hayes, the former CEO of Bitmex, offered an additional perspective on current market conditions. “Some of you are terrified, but I love taxes,” said Hayes. According to Hayes, global economic imbalances will ultimately be corrected. Thus, although a certain disarray is inevitable on the short -term market, Hayes predicts that the solution will probably imply the impression of more money, which he considers as beneficial for Bitcoin. “The dollar is even weakened even that foreigners sell American technological actions and repatriate their money. It’s good for Bitcoin and Gold in the medium term, ”he predicted. His comments also align with a recent report by the English -speaking Beincrypto team on the opposite correlation between the US dollar index (DXY) and the Bitcoin course. Thus, a drop in the first could benefit the second. Bitcoin course performance. Source: Beincrypto for the moment, that said, the BTC continues to undergo modest losses. During last week, he dropped 4.5 %, compared to 1.0 % over the last 24 hours. At the time of writing this article, Bitcoin was traded at $ 82,855. Morality of history: Bitcoin is only afraid of fear. Notice of non-responsibility Non-responsibility notice: In accordance with the guidelines of The Trust Project, BEINCRYPTO undertakes to provide impartial and transparent information. This article aims to provide exact and relevant information. However, we invite readers to verify the facts of their own and consult a professional before making a decision on the basis of this content.
