Bitcoin Rebounds, But “Extreme Fear” Still Surrounds the Market

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“As seen last week, the risk-off nature of markets at the moment is not isolated to equities. Crypto, basically risk assets on steroids, continues to face headwinds, with bitcoin now down more than 50% from the November peak, and looking ready for a test of the psychologically important $30,000 mark,” Caxton FX strategist Michael Brown said.

Crypto Fear and Greed Index Suggests “Extreme Fear” in the Market

Other altcoins saw severe losses amid the bearish market, but the cosmos network’s Atom crypto saw the biggest gains. Atom is up 16% in the last 24 hours, trading around $35,60.

According to market analysts, the recent bridge to the Polkadot network contributed to the outperformance in cosmos. The recent link will allow the two blockchains to exchange data in-between them.

Despite the rally on Tuesday, extremely negative sentiment is still surrounding the crypto market. The Crypto Fear and Greed Index was at 12, the lowest level since January 8, suggesting “extreme fear”. Meanwhile, a reading above 40 would indicate “greed” and the index reached this level in late December.