The data is aggregated, which puts it on a scale of 1-100, with 1-25 being Extreme Fear, 26-46 being Fear, 47-54 being Neutral, 55-75 representing Greed, and 76-100 representing Extreme Greed. Each of these shows either bullishness, bearishness, or nonchalance in the market.
One of the oldest sayings in the financial world is to “buy when there is blood on the streets.” This represents times of extreme losses, where most investors are scared to put their money in the market. Thus, with the market teetering on Extreme Fear, it could be the time to buy.
By Sunday, the market was already recovering, with the Bitcoin price crossing $114,000 and Ethereum making its way back above $4,000. It is still quite early to tell if the market is in a full recovery trend, but with prices already bouncing, it could signal the next wave of gains.
