The crypto market returned to the fear zone for the first time in two months due to the fall of Bitcoin

Bitcoin BTC $113,057.00 Mezo Wrapped BTC 0.38% Market capitalization $40.42 million VOL. 24 hours $1.6 billion has come under pressure again: the asset’s price has fallen to $ 112,600, and the fear and greed index has shown a value of 45, which corresponds to the «fear» zone. This is the first time since September 7 that the market has returned to this mood, NewsBTC reports, citing data from Alternative.me.

The index is based on five factors: volatility, trading volumes, market dominance, social media sentiment, and Google trends. Values below 47 mean «fear» and above 53 mean «greed.» The current 45 points indicate investor caution after the sharp decline in the value of bitcoin and other crypto assets.

Nevertheless, analysts remind that historically, the market often behaves in a way that is contrary to the expectations of the majority. Zones of «extreme fear» (below 25) often became the points of local days, while «extreme greed» (above 75) preceded the formation of peaks. Although the current value is far from extreme, the disappearance of «greed» can be seen as a positive factor for the continuation of the bullish trend.

The recent price drop has also triggered a wave of liquidations in the derivatives market. At the same time, CryptoQuant data shows that open interest has already recovered by $ 1 billion (2.63%) after a sharp decline, which indicates that speculators are ready to open positions again.

At the time of publication, bitcoin is trading near $ 113,000, maintaining a trend of volatility after a sharp collapse.