The digital currency market we saw in 2021 had its ups and downs. Many more investors seemed to have experienced a considerable amount of time like never before as they put their money in it. 2021 was a year that carried multiple numbers of bulls that ran away, giving too many crashes along with dips. These things further plagued the market in a big way.
Nevertheless, it proved to be the best bet for different profiles lying at the end of the day for some people. The past three years have gone steady for coins till 2021 came, and we saw a drastic rise in Bitcoin and other digital coins. It was a brutal year to see even the bull rallying to the new height. Nevertheless, 2021 had several suitable lessons and learnings for different investors.
The fact is you cannot just remain away from the dark areas, and there is no bright light that stays for long. So here, we will look at how the market’s emotions have moved. It proved either bright or bane, but the sentiments have moved the entire year, and the emotions went up and down, going a rollercoaster way.
The Cryptocurrency Fear and Greed Index
Looking back to 2021, we have seen the investors’ sentiments reaching the highest level. Entering into the extreme kind of greed to the positive moving idea of investors, we can see things moving ahead at a more excellent speed. It has also helped boost the positive outlook of the people who feel like investing in this domain. However, we see the investors playing a different role in the upcoming months in the market. For many more months, we have seen the market sentiments rising high and coming along with the extreme faith and greed on digital coins. These emotions have been on the higher side.
The very critical distinguished cost crash seen in the digital currency was first seen during May. It further showcased the sentiments of the market with it.
After remaining in the greed sector for long, one can find that the emotions were seen suddenly remaining amidst the fear, and investors were seen worrying about the market as well. It continued via most of the season like the market-wide dips that continued to rock in the market, and thus it is turning out to be dragging emotions acting in the negative domain.
By spring, we have seen the market bouncing back to rally. We see the emotions slowly and steadily moving ahead amid the fear zone, and it went on to remain neutral. In this way, it was seen hovering between these emotions – fear and greed.
The Next Phase
With August, one can find the market growth of some other stretch as found in positive emotions like the market seen coming along with the greed territory. Hence, the rallying costs came along with the investor favorite that seemed to hit the different highs.
However, it did not have the same emotions and got derailed till September with the market crash. The fear and greed index was seen moving with yet another rallying at the end that brought people back again. Thus at this juncture, the market emotions were seen spending a sizable amount of time duration in the greed zone before it started coming back again.
All the skilled investors have relied upon the various tools, including the fear and greed index, to make revenue in the digital currency market this year. Hence when you see others remaining under fear, investing in the current market is always a good idea. It helps invest big by putting the cost double in the market.
Moreover, the said trend will go on a longer note by continuing in the garb of 2022. Thus it will help the investors in a big way with the help of buying the dip options in the next year. But, we see the said index going down, and the investors fear the market.
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