Bitcoin (BTC), down nearly 20% from all-time highs, is finally taking a toll on market sentiment – investors are now “scared”.
According to the Crypto Fear & Greed Index, losses that occurred on the night of November 19th erased the last traces of “greed” from the minds of traders.
From “greed” to “fear” in two days
With BTC dropping this week, sentiment increased as spot price contradicted persistent bullish signals from the markets.
Derivatives traders have been – and to some extent still are – in the glut phase, and some are still opting for a sharp price hike in the short term.
Overall sentiment, as measured by the Crypto Fear & Greed Indicator, has changed to closely match the situation.
At the time of writing, this indicator is only measured at 34/100, which characterizes “fear”, after dropping as much as 20 points overnight.
The sharp decline contrasts starkly with behavior for most of the past two months, when the index remained in the greedy zone around the 1970s.
As such, investors are now at their worst point since late September, before Bitcoin started to climb to its most recent highs.
The Fear and Greed Index of Cryptography. Source: Alternative.me
Old hands hung
Some investors may be more fearful than others.
Related: Bitcoin Holds $56K as Whales Continue to Buy – Check These BTC Price Levels
As Cointelegraph notes, whales have been piling up as prices continue to drop, and there’s also a distinct difference between old and new loafers.
This is confirmed by numbers that show the total percentage of the currently unprofitable Bitcoin supply.
Long-Term Owners (LTHs) have recently been operating with minimal sales and a supply of just 3%, which is currently unprofitable, according to Glassnode notes chain analyst.
Short Term Carriers (STH) – coins that have moved in the past 155 days – took the brunt of the sale.
“STH who bought the top now owns the majority of bitcoin at unrealized losses,” Glassnode wrote in a Twitter comment Friday.
