The Bitcoin fear and greed index has dropped yet again from neutral, just a few days ago, to extreme fear as the price once again dipped from a $44k mark to a $37k mark. The big question right now is whether this is the last dip or if more dips are to come.
Bitcoin Fear and Greed Index
After BTC reached $69k, dips have been happening again and again with its value dropping initially to the $45k mark down to its $37k mark with a few more smaller dips in between. In addition, experts remain positive that the price of Bitcoin will still reach $100k.
According to the Bitcoin Fear and Greed Index, BTC's current market sentiment is at 20 out of 100 putting the cryptocurrency in a state of extreme fear. When the market is aggressively bullish, the market sentiment usually transitions into a state of extreme greed and when the market becomes aggressively bearish, the market sentiment also transitions into a state of extreme fear.
Predictions Go Up to $100k with Others Saying BTC will Reach Just $10k
As per an article by Time, despite the volatility, experts are still positive that the price of BTC is still on its way to hit the $100k mark. In addition, a Deutsche Bank study found out that Bitcoin investors believe that the price will hit $110k in the next five years.
Other skeptics, however, believe that the price of BTC could go as low as $10k this year. In addition, a New-York based certified public accountant, Kate Waltman, who specializes in crypto, noted that "the most knowledgeable educators in the space are predicting $100k Bitcoin" in the first quarter of this year "or sooner."
The article by Time, however, notes that bullish experts are now "re-evaluating the crypto industry altogether" as certain companies like Nike and other big brands are all looking at different ways to be able to monetize their products within the "digital metaverse."
With the rise of different metaverse worlds, games, products, and even experiences all pushing altcoins' popularity, investors are changing their sentiments when it comes to Bitcoin which, as per the article, was considered the "original crypto."
Read Also: Curve Beat Uniswap in TVL With an Additional $12 Billion
Bitcoin's Built-in Scarcity is About to Play
As of the moment, there are still 18 to 19 million Bitcoins that are currently in circulation with minting expected to stop when Bitcoin reaches 21 million. In addition, Industry experts are pointing towards "built-in scarcity" as a major part of the appeal when it comes to the cryptocurrency.
According to the article by Time, experts recommend that investors do not put "more than 5% of your overall portfolio into cryptocurrency." As per potential dips happening in the future, this highly depends on when wales decide to cash out for fiat money or when extreme fear pushes more retail investors to sell their holdings at a loss.
Related Article: Shiba Swap Takes Place as Top Dex by Social Signal: Uniswap V3 Falls In Second Place
This article is owned by Tech Times
Written by Urian B.
