Wait a second... is it all over?

Following the recent carnage in crypto, Bitcoin market participants certainly have just cause for concern. 

Interestingly, while CNN Money initially developed the Fear and Greed (F&G) index for conventional stock markets, Alternative.me actually provides a similar adaptation for Bitcoin practitioners.

The F&G Index tracks investor sentiments towards the markets and typically indicates bullish or bearish markets. As its name aptly suggests, the indicator is constructed using two polar trading emotions - Fear and Greed.

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It is without a doubt that investors and speculators alike can be irrational, and there is a penchant for wild or extreme market conditions to exacerbate this disorder.

For example, traders tend to become most fearful during periods of economic depression. Meanwhile, investors tend to become greediest when the market is raging at full steam. 

“Be fearful when others are greedy and greedy when others are fearful” - Warren Buffett