Cryptocurrencies can’t seem to get out of their own way lately, and it is showing in investor sentiment. The Bitcoin Fear and Greed Index has reached a reading of 10, which is a reflection of extreme fear. And while billionaire investor Warren Buffett may not be a cryptocurrency fan, bitcoin investors might want to apply some of his investment advice to the current situation: “Be fearful when others are greedy and greedy when others are fearful.”
Bitcoin Fear and Greed Index is 10 ~ Extreme Fear pic.twitter.com/p0R7Sxnvub
— Bitcoin Fear and Greed Index (@BitcoinFear) June 22, 2021
Bucking the Trend
One bitcoin miner who is apparently bucking the fearful trend is Chun Wang, whose Twitter account is @satofishi with more than 25K followers. Chun, a co-founder of China’s f2pool, said that he scooped up 1,100 bitcoins in recent days, with a price tag of more than USD 35 million, and is not done with his buying spree. He will seemingly find a bargain.
The bitcoin price is currently hovering at USD 31,408, having shaved more than 50% from its market cap since its all-time high of more than USD 63,000. The Bitcoin Fear and Greed Index has been oscillating between fear and extreme fear for weeks and last showed a tendency toward greed before mid-May.
Bitcoin USD 100K or Bust
Crypto analyst PlanB, who boasts more than 584K followers on Twitter, has shared some stats that underpin the extreme fear that is currently permeating the market. According to a Twitter poll he led, slightly more than 40% of survey participants expect that bitcoin will trade below the USD 100K threshold this year, which he noted invalidates the stock-to-flow (S2F) model.
While that percentage might not seem alarming, it was only 16% a few months ago when he conducted a similar poll in March. At that time, the bulls were in charge and the bitcoin price was trading at USD 55.
What a difference 3 months make!
41% now thinks bitcoin will stay below $100K in 2021 (invalidating S2F model) vs 16% in March (when BTC was $55K). pic.twitter.com/S9PKR8FSnb
— PlanB (@100trillionUSD) June 22, 2021
One high-profile trader who is clearly not taking Buffett’s advice is Jim Cramer. The CNBC commentator has been gripped by the fear and as a result has parted with most of his bitcoin holdings, saying on the business network that he didn’t need it.
Cramer was spooked by a one-two punch of China’s bitcoin mining crackdown and the stigma attached to bitcoin on the heels of the Colonial Pipeline attack. Cramer, who had already started shrinking his BTC portfolio before the latest negative developments, reportedly expects neither the Chinese regime nor the U.S. government to be kind to the cryptocurrency market.