Crypto Fear & Greed Index

[khiholangkang]

So far what I hold in the principle of dealing with the market, when people are experiencing fear in the market then that is the time for us to jump in, I like to see how the market responds, fear is an index or indicator to gain more momentum.

I want you to see that the more fearful people the whales continue to accumulate bitcoin or altcoins that have very high potential when the market turns around, so use that index to increase your chances of taking profits, yes sometimes if you are used to trading more risky when fear it will suppress mentally if the decline continues to deepen.

If people are greedy then it's time for us to get out of the market, before the bubble bursts.

[nelson4lov]

So far what I hold in the principle of dealing with the market, when people are experiencing fear in the market then that is the time for us to jump in, I like to see how the market responds, fear is an index or indicator to gain more momentum.

I want you to see that the more fearful people the whales continue to accumulate bitcoin or altcoins that have very high potential when the market turns around, so use that index to increase your chances of taking profits, yes sometimes if you are used to trading more risky when fear it will suppress mentally if the decline continues to deepen.

If people are greedy then it's time for us to get out of the market, before the bubble bursts.

On paper, it's very easy to say — "when people are fearful, buy as much as possible and sell when people are euphoric". It's only easy to say. In practice, it's actually harder to execute. For one, you might actually have an active trade prior to market going down and then you have to suffer your losses. You won't be able to "buy the dips" in that state of mind, I can assure you of that. I have experimented it for a while now with the recent experience being that Bitcoin drop from ATH to $53K and altcoins -80% correction. Not very easy except you have plenty of capital to DCA on the dips.

[irhact]

According to CoinCarp https://www.coincarp.com/market/fear-greed-index.html data, today’s Fear and Greed Index is 25 (yesterday it was 29), reaching a new low since January 2023. The market sentiment is currently in a state of “extreme fear”

Things are returning back to neutral and the price of Bitcoin has also been increasing. I just checked on coinmarketcap and the fear-greed index is at neutral with 45 points. Bitcoin is also trading at $61,150 which is an increase from how low it was trading last week. The market is now recovering and the confidence of investors are coming back. I see some altcoins are also joining in the pump and the market is looking much better and it'll build back the confidence of investors. If this continues and bad no news spoils the recovery, Bitcoin could be trading higher than we expected due to the sudden dump that the market had and everything fall badly. I won't be too happy to invest now but wait as this might just be a bull trap to make us buy and the market has another dump.

[Ahli38]

According to CoinCarp https://www.coincarp.com/market/fear-greed-index.html data, today’s Fear and Greed Index is 25 (yesterday it was 29), reaching a new low since January 2023. The market sentiment is currently in a state of “extreme fear”

Currently, everyone is becoming more careful about entering the market because in the past few weeks we know that market conditions are very difficult to predict. And some FUD is coming too. Such as news of the German government selling their BTC and also news related to Mt.Gox. But fortunately the German government has finished selling their BTC holdings and yes this has had quite a positive impact on the increase that has occurred in BTC in recent days. but everyone is still alert to market conditions. And naturally, according to sentimental analysis using one of the indicators of fear and greed, it shows this. But in the last few days we have seen passion return to the market since the German government finished selling their BTC. And btc price has also risen back to the current price of $62k. But I personally am still wary of my daily trading. And don't use large capital at this time. Except for the accumulation of some altcoins for the medium term. I'm not worried about the increase or decrease that will occur in the near future.

[crwth]

This is my indicator towards buying more because I remember the quote that buy when others are in fear. It's really that simple I think and so far, I have managed to generate some profits because of this. It's still in the short term range but hopefully, in the long run, I will get to even higher returns with my leveraged trade.

Let's see what happens next.

[LoyceV]

On paper, it's very easy to say — "when people are fearful, buy as much as possible and sell when people are euphoric". It's only easy to say. In practice, it's actually harder to execute.

It's still just another part of "timing the market". I've learned a long time ago I can't time the market, which makes it pointless to try to buy/sell at the right time. Bitcoin can easily go down 80%, or up 400%. And that can start at any moment. It's not possible to time.

[mindrust]

Altcoins have found their purpose. They are real cash (their purchasing power mostly suck like FIAT too) and btc is digital gold.

70% btc,
10% ltc,
10% xmr,
10% doge

is a nice balanced portfolio.

I can get behind what mindrust said about LTC and XMR. Not sure about doge, but I believe online gambling anyway doge will always have its place, until today.

I would still do 80% BTC, and equally between LTC and ETH, XMR only if you really use (for me hard to find people who accept).

Long-term, I expect all altcoins to lose against Bitcoin. If you use them for small daily expenses, then it makes sense to keep some. So if you own $1000 in Bitcoin, a couple hundred bucks in low-fee altcoins makes sense. But if you own millions, the altcoin-part still only makes sense if it's a couple hundred bucks. In that case I'd say you should be closer to 99.9% Bitcoin.

If you own millions you still need to diversify into other assets and crypto shouldn't be your only asset.

The right percentage obviously varies from person to person but I wouldn't feel OK if I had 10 million USD all in crypto assets and no I still wouldn't feel safe if all were in btc. A big portfolio like that needs to have different assets and asset classes. It is a corporate level portfolio at this point and it needs to be managed like a corporate.

Bonds, stocks, cash, real estate are a must.

If one can afford to hodl millions of dollars in crypto, he probably has tens of millions in his other assets.

[LoyceV]

If you own millions you still need to diversify into other assets and crypto shouldn't be your only asset.

Of course. Go wild on the stock market. But diversification into shitcoins is kinda pointless. See this graph: long-term, the average altcoin loses against Bitcoin.

I wouldn't feel OK if I had 10 million USD all in crypto assets and no I still wouldn't feel safe if all were in btc.

Once you've reached the 10 million level, you can afford to speculate. Keep everything you need for a comfortable life in more stable assets, and speculate as much as you want with the rest.

If one can afford to hodl millions of dollars in crypto, he probably has tens of millions in his other assets.

Maybe except for the select few who gained their fortune through Bitcoin.

[mindrust]

Of course. Go wild on the stock market. But diversification into shitcoins is kinda pointless. See this graph: long-term, the average altcoin loses against Bitcoin.

It is a different story from a business owner's perspective though.

In one event, where you are actively send and receive crypto, say you are a in the lending business, holding altcoins make more sense. Especially if you are doing micro-lending, as low as $50... In this case you surely wouldn't want to hold many bitcoins. It is because your coins are your merchandise.

Maybe except for the select few who gained their fortune through Bitcoin.

Let's say a person has been holding 100 btc since 2015. (I believe one could buy 100 btc for $30000*  some time in 2015) That's now 6.3 million dollars.

Do you think it is wise to keep holding or is it wiser to diversify into other assets now?

Maybe keep $1m in btc and have a boring boomer portfolio which generates lots of cash income with the rest of the money?

edit: I must have missed one "0". *fixed.

[LoyceV]

Maybe except for the select few who gained their fortune through Bitcoin.

Let's say a person has been holding 100 btc since 2015. (I believe one could buy 100 btc for $3000 some time in 2015)

According to bitcoinaverage.com, that would have cost at least $20k.

Do you think it is wise to keep holding or is it wiser to diversify into other assets now?

If I'd have $6M in any one asset, I'd diversify it. Chances are you miss out on many more millions of dollars if (when) Bitcoin goes up more, but at that point securing enough funds to live comfortably would be my main priority.
To me, the bigger question is what to do before you reach that amount of money. If you have 1 Bitcoin now, and no other investments, would you diversify now? If Bitcoin drops a lot, you'll take a hard hit. But if it goes up a lot, you may reach the above situation at some point.

Maybe keep $1m in btc and have a boring boomer portfolio which generates lots of cash income with the rest of the money?

I doubt a long-term hodler will sell the majority at once. Start with 20%

[mindrust]

To me, the bigger question is what to do before you reach that amount of money. If you have 1 Bitcoin now, and no other investments, would you diversify now? If Bitcoin drops a lot, you'll take a hard hit. But if it goes up a lot, you may reach the above situation at some point.

I guess people with small portfolios should be taking more risks and bitcoin doesn't offer much risk anymore. It is fairly stable, as stable as a crypto currency can get at least. That's also why most people try their luck with alts because it like a lottery ticket to them. Go big or go home...

Back in the day when btc was $100-1000 many people followed the same idea.

People who bought eth when it was $9 did the same thing.

Or... people who bought Gamestop (GME)


Having $60k in btc kind of falls in a tough spot. BTC already has a trillion usd market cap. Sure its supply is limited and the demand is high and according to this math btc's price should inflate indefinitely... but most importantly, the central banks have been printing money for decades which ensures this prediction.

The question is, will btc be the one to absorb all those papers?

ETH has been eating BTC's lunch for years. Maybe some other project will emerge and become as big or even bigger than ETH... One should keep an eye on the new projects for that reason.


With $60k, I would probably keep $20k in crypto ( $15k in btc, $5k in my favorite alts) and put $40 in boomer stocks. Age and expectations are important too. It is different game for a guy who is in his 20's and a whole different one for a guy who is in his 50's.

[Dave1]

According to CoinCarp https://www.coincarp.com/market/fear-greed-index.html data, today’s Fear and Greed Index is 25 (yesterday it was 29), reaching a new low since January 2023. The market sentiment is currently in a state of “extreme fear”

I think the index at coinmarketcap and it's 48/100.

So it almost reach 50% by today after it was really very low because of the dumping by the German government. Nevertheless, we have passed that test already, no more FUD from that news, and as I have said before, they've sold everything already, so that is good enough for us.

As for the market sentiments, not sure though if this is a good gauge or not.

[LoyceV]

I guess people with small portfolios should be taking more risks and bitcoin doesn't offer much risk anymore. It is fairly stable, as stable as a crypto currency can get at least. That's also why most people try their luck with alts because it like a lottery ticket to them. Go big or go home...

I'll throw in a counter argument: people with small portfolios can't afford to take a lot of risk. If you own $10k and lose 99% of it, you'll be hungry by the end of the week if you don't have a stable income. If you own a billion and lose 99% of it, you may have to get a smaller yacht and downsize your lifestyle, but you're still better off than 99.99% of the population.

ETH has been eating BTC's lunch for years.

Altcoins are only created to make the creator rich. Add some FOMO and many people fall for it. Nothing changed, even now new altcoins are still created for the exact same purpose, all with the same BS claims to change the world.

[mindrust]

I guess people with small portfolios should be taking more risks and bitcoin doesn't offer much risk anymore. It is fairly stable, as stable as a crypto currency can get at least. That's also why most people try their luck with alts because it like a lottery ticket to them. Go big or go home...

I'll throw in a counter argument: people with small portfolios can't afford to take a lot of risk. If you own $10k and lose 99% of it, you'll be hungry by the end of the week if you don't have a stable income. If you own a billion and lose 99% of it, you may have to get a smaller yacht and downsize your lifestyle, but you're still better off than 99.99% of the population.

Millions of people are earning minimum wage and barely save any money or can't save at all. These people are not really "living" anyway. They don't care if they saved $5k in 5 years or 0. However, with a bit of luck, that $5k might become $500k and that's a nice amount to retire on in some fairly safe parts of the world. They don't have much to lose. Gambling is their only chance.

It is a different story for a middle class person who owns a business or has a nice job with a fairly high salary, a doctor maybe... These people should play it safe indeed.

[stomachgrowls]

This will only make people to panic. Remember that when the market was increasing, it was in extreme greed which means people are buying. The market then started to fall. So if it is in extreme fear, it means people are selling and that would be the start of another bull market because after the bears, bulls will follow.

People should not panic but DCA instead.

One of the places on which those people or traders will really be checking out but actually this is something that will not give out that 100% precision or simply making it as a signal for you to buy.
We do saw those guages on where it would really be pointing out. It would really be just that basing up on the market condition or sentiment but somehow checking up this indexes wont really be
that also a bad thing. You could get up some idea on whats the current market condition or feeling or in terms of emotion of most people now.We dont know on whats their basis but actually checking out market
conditions and emotion around would really be that pretty obvious on this aspect or manner. So it would really be just that depending on how you would be applying these sentiments
into your market analysis approach. Some would really be giving out that kind importance when it comes to this aspect but there are ones who dont really care nor check out
but for me then these indexs are really that still relevant or something that would really be at least give out that kind of idea and awareness on which you could really be able to make use
on the moment that you are basing up with market conditions specially on emotion manner whether fear and greed.

[tranthidung]

Of course. Go wild on the stock market. But diversification into shitcoins is kinda pointless. See this graph: long-term, the average altcoin loses against Bitcoin.

Else, can use this article and some graphs inside it.

The two types of Altcoins, an investor's view.

Bitcoin is up with time, altcoins are down or died. It's more lucky if altcoin enthusiasts pick Oscillator altcoins but it's very bad if they choose Degen altcoins. Altcoin investors, enthusiasts can consider themselves as Degen but if altcoins they hold are in Degen type, it's terrible for their portfolio.

[slaman29]

I can get behind what mindrust said about LTC and XMR. Not sure about doge, but I believe online gambling anyway doge will always have its place, until today.

I would still do 80% BTC, and equally between LTC and ETH, XMR only if you really use (for me hard to find people who accept).

Long-term, I expect all altcoins to lose against Bitcoin. If you use them for small daily expenses, then it makes sense to keep some. So if you own $1000 in Bitcoin, a couple hundred bucks in low-fee altcoins makes sense. But if you own millions, the altcoin-part still only makes sense if it's a couple hundred bucks. In that case I'd say you should be closer to 99.9% Bitcoin.

If you own millions you still need to diversify into other assets and crypto shouldn't be your only asset.

The right percentage obviously varies from person to person but I wouldn't feel OK if I had 10 million USD all in crypto assets and no I still wouldn't feel safe if all were in btc. A big portfolio like that needs to have different assets and asset classes. It is a corporate level portfolio at this point and it needs to be managed like a corporate.

Bonds, stocks, cash, real estate are a must.

If one can afford to hodl millions of dollars in crypto, he probably has tens of millions in his other assets.

Totally agree with LoyceV about 99% Bitcoin vs altcoins IF you don't really use crypto at all.

Like me, I use LTC and Doge because gambling, just makes sense to use them, cheaper with a lot of deposits and withdraws, unless you leave coins on site, but I don't like doing that And most traders I know from long ago who can exchange your BTC also ok to accept LTC and Doge, but all other altcoins are pointless if you don't use them, just stick to Bitcoin.

At the same time, I should mention that this doesn't mean saving everything in Bitcoin! I personally focus only on Bitcoin but my salary savings mainly still goes into longterm funds (bonds). Yes inflation etc but big interest plus government protection (free insurance of deposits) can't be ignored.

If you have really more money to invest, for sure real estate and basket of stocks. Diversification.

But people think diversify means BTC + alts. So so so wrong.