With the Bitcoin (BTC) toll dipping below a $29,000 threshold, the investor mood is worsening and the Crypto Fear and Greed index has plunged to October 2020 levels.

On Jan. 22, the Crypto Fear and Greed alphabetize sharply dropped to a value of xl, moving the market place sentiment from "Farthermost Greed" to "Fearfulness." The index dropped to this low for the first time since Oct. 3, 2020, when Bitcoin was trading at around $10,500.

Crypto Fright and Greed Index one-year chart. Source: Culling.me

Like to the fear and greed indexes in the traditional markets, the Crypto Fear and Greed alphabetize is a tool that measures two of the primary emotions that influence how much investors are willing to buy crypto like Bitcoin.

According to Culling.me, the farthermost fear level can be a sign that investors are likewise worried, which could mean a proficient buying opportunity. In contrast, when investors are getting likewise greedy, it could be a sign that the market is due for a correction.

Indeed, prior to dropping to 40, the Crypto Fear and Greed Alphabetize topped at 95 on Jan. half-dozen, demonstrating that investors turned very greedy among Bitcoin hitting its all-fourth dimension highs of $42,000 on January. 8. The Bitcoin price subsequently saw a major correction, dipping to as low every bit $28,750 on Jan. 21.

Source: Alternative.me

Every bit Bitcoin has been suffering a sharp correction in recent days, more than people in the industry accept been commenting on the cost moves. On Jan. 21, Scott Minerd, chief investment officer at financial services firm Guggenheim, predicted that Bitcoin is poised to drib to $20,000. The exec yet believes that Bitcoin will hitting $400,000 in the long-term, only non this yr.

Mike Novogratz, the founder of Milky way Digital, is confident that Bitcoin volition rally once again. He tweeted on January. 21, "Humans aren't meant to alive in 150% vol environments. That was the tell. When vol recedes volition nosotros bottom, base and resume the rally."

At publishing fourth dimension, the Bitcoin price has slightly rebounded at around $31,000. The globe'southward largest cryptocurrency is down more than 10% over the past 24 hours merely is yet upward almost 30% over the past 30 days, according to Cointelegraph'due south Bitcoin cost alphabetize.