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Bitcoin market sentiment reverts to ‘fear’ during 1929 crash 91st anniversary

Investor’s sentiments about Bitcoin have gone back to ‘fear’ based on the market index. This has occurred exactly 91 years since the 1929 stock market crash that occurred on Sep. 4. Following the crash, the markets began to die instantly leading to monumental losses for investors. Now, following the weaknesses shown across multiple macro indices there is fear that history could repeat itself, but in the crypto markets this time around.

Bitcoin price drop is a buying opportunity

Bitcoin price has been on a freefall recently since reaching highs of $12,300 on Aug. 17. The leading digital currency has declined sharply this week and is barely hanging above the $10,000 level. This consistent downtrend has therefore sparked a substantial degree of fear among investors with growing concerns that the virtual asset may revert to a four-figure valuation.

Despite the frightening comparisons with the1929 market crash, experienced crypto investors remain optimistic and unfazed even with the likelihood of further losses. According to Raoul Pal, CEO Global Macro Investor and Real Vision Group, this is nothing out of the ordinary. Based on his tweet investors should be braced for even further declines as bitcoin is likely to undergo correction in the post-halving cycle.

instead of being fearful, Pal sees the recent dip as a buying opportunity and urged his followers to adopt the Dollar Cost Averaging (DCA) strategy to increase their Bitcoin holdings. DCA is an investment strategy that involves purchasing bitcoin for a predetermined value at regular intervals. This helps investors build their portfolio slowly while shielding them from its price surges and declines. This strategy has been widely advocated in the crypto community and was recently rolled out as a feature on the Square payment application.

Bitcoin decline not as huge as feared

Bitcoin’s recent decline is not as bad as initially feared, at least in comparison to some of its other drawdowns. However, this was not enough to convince investors otherwise as their sentiment shifted substantially within a few days. A few days ago, the market sentiment according to the Crypto Fear & Greed Index was firmly fixed in the ‘greed’ territory. Bu following bitcoin’s recent drop the index fell by over 30 points on Friday Sep. 4 moving from 70 to 40. This is the first time that bitcoin investors are fearful of the digital asset since July thus indicating falling trust in the asset’s price in the near term.

Image by Steve Buissinne from Pixabay

Edward Nored

Edward Nored

Edward is a naturally curious BTC lover with a deep interest in blockchain, fin tech, fields which he dedicates his time to researching.


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