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The index also adds that people \u201coften sell their coins in irrational reaction of seeing red numbers.\u201d The index has been in a state of \u201cextreme fear\u201d and \u201cfear\u201d since March of last year, and has kept on dropping as more bankruptcies have been announced in the space, including that of Celsius Network, BlockFi, and Genesis\u2019 lending unit. The collapse of FTX saw the index dip significantly as confidence in centralized exchanges took a hit.<\/p>\n
The index claims that market sentiment extremes can signal a potential reversal in price. Extreme fear indicates that investors are \u201ctoo worried,\u201d and could present a buying opportunity, while greed indicates the market is due for a correction.\u00a0<\/p>\n
As CryptoGlobe reported, Bloomberg commodity strategist Mike McGlone, who is a well-known cryptocurrency bull, has recently suggested BTC investors should be accumulating the flagship cryptocurrency before its price explodes upward and hits $150,000.<\/p>\n
The commodity strategist added that he believes the recent cryptocurrency market rally that saw the flagship cryptocurrency\u2019s price hit $23,000 this month is a case of investor \u201chopium,\u201d and that cryptocurrency prices are likely to keep dropping as the Federal Reserve and other central banks keep raising interest rates to control inflation.<\/p>\n
Per his words investors are \u201csupposed to be careful with this rally.\u201d Notably, last year McGlone defended that\u00a0Bitcoin\u2019s price hitting $100,000\u00a0was just a \u201cmatter of time,\u201d as both adoption and demand for the cryptocurrency are increasing.<\/p>\n