The Crypto Fear and Greed Index returned to its lowest level on Monday, as Bitcoin fell more than 4% on the day to $64,300, regaining its gains since Friday.
According to Coinglass, more than 136,000 traders were liquidated in the past 24 hours, totaling $458 million in liquidations, 92% of which were long leveraged positions.
Bitcoin rose some over the weekend, hitting $68,600 on Saturday, but is currently sitting at the support of the bottom of the intrarange channel that formed after the collapse to $60,000 on February 6th.
Bitcoin is currently trading 48% below its October all-time high of $126,000 and 5.5% below its 2021 bull market peak level of $69,000.
Bitcoin fell more than $3,000 in less than two hours. sauce: TradingView
Fear and greed index at historic lows
Alternative.me’s Crypto Fear and Greed index, which measures overall market sentiment, has fallen to 5 out of 100, indicating “extreme fear.”
Since the index was launched in 2018, prices have only been this low three times: in August 2019, June 2022 and earlier this month.
On-chain analytics provider Glassnode reported on Monday that investors are still succumbing, with the seven-day moving average of recent investor net realized losses still nearing $500 million per day.
“Although the intensity has subsided, the broader regime still indicates the market is under pressure, and foundation stage participants continue to capitulate.”
Bitcoin Sharpe ratio also hits historic low level
Meanwhile, analyst Michael van de Poppe posted what he called a “phenomenal chart” on Saturday that shows Bitcoin’s Sharpe Ratio has fallen to -38.4, which has “historically indicated a ‘low risk’ accumulation zone.”
This ratio measures Bitcoin’s performance relative to the risk taken and indicates how much return investors can expect for each unit of risk.
Bitcoin’s Sharpe Ratio has only been lower twice in history. sauce: michael van de poppe
