The price of Bitcoin (BTC) has fallen almost 20% from all-time highs and has affected market sentiment – investors are now “scared.”
According to the Crypto Fear & Greed Index, the overnight losses of November 19 removed the last traces of “greed” from the minds of traders.
From “greed” to “fear” in two days
As BTC price action headed lower this week, Sentiment caught up as the spot price contrasted with the still bullish signals from the markets.
Derivatives traders were, and to some extent still are, in a phase of exuberance, and some are still betting on a spectacular price rally in the short term.
The general feeling, measured by the Crypto Fear & Greed Index, now it has changed to correspond to the spot more closely.
At the time of writing this report, the index measured only 34/100, which characterizes “fear”, having dropped 20 points overnight.
The sharp fall contrasts sharply with the behavior during much of the last two months, where the Index stayed in “greed” territory near the 70s.
As such, investors are now more fearful than in late September, just before Bitcoin started its surge to recent all-time highs.
Older holders hold their own
Some investors may be more fearful than others.
As Cointelegraph noted, whales have been piling up even as prices continued to fall, while a clear difference between the old and new hodlers is also visible.
This is underscored by the figures showing the overall percentage of the BTC supply stream in earnings.
As pointed out by the chain analysis firm Glassnode, Long Term Holders (LTH) have recently made minimum sales and own only 3% of supply that is currently not generating a profit.
Short-term holders (STH), with currencies that have moved in the last 155 days, they have gotten the brunt of the sell off.
“STHs that bought the top currently hold the majority of all BTC with an unrealized loss,” wrote Glassnode in the Twitter comments on Friday.
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