- Crypto Fear and Creed Index hit its 12-month low as investors were closer to ‘extreme fear’
- The downward move wiped out $200 billion in the altcoin market cap.
- Calling ‘alt season’ at the first sign of a recovery in Bitcoin’s price is an imprecise strategy.
Bitcoin reached a $64,900 all-time high on April 14 after accumulating 124.5% gains in 2021. Nevertheless, a 27.5% correction followed over the next eleven days, marking a $47,000 local bottom.
On April 25, the popular Crypto Fear and Greed Index hit its 12-month low, indicating that investors were closer to “extreme fear,” which was the exact opposite of the “extreme greed” level seen during the Bitcoin rally above $60,000.
Notably, this downward move from April 14 to April 25 wiped out $200 billion in the altcoin market capitalization. However, the ensuing recovery could serve as a guide to what to expect when Bitcoin finally manages to exit below the $40,000 level.
This article was first published on coinquora.com