Against the backdrop of today's boom in the digital currency market, Bitcoin has always been a hot topic that has attracted much attention. Investors are often affected by Bitcoin price fluctuations, especially in times of extreme panic or greed. This article will take an in-depth look at Bitcoin’s fear and greed index and analyze investors’ behavior and decisions under such sentiments.

Bitcoin's price fluctuations have triggered extreme panic in the market, with investors beginning to question their investment decisions. Amid such panic, trading volume in the market may increase dramatically, with investors considering selling Bitcoin to avoid risks. However, it is within this panic that opportunities also hide. Some investors may choose to buy Bitcoin during times of panic, as the price may rebound once sentiment stabilizes. For example, when Bitcoin prices plummeted at the end of 2017, some investors seized the opportunity to buy and ultimately received huge returns.

The greed index represents the greediness of investors in the market. When the price of Bitcoin rises, investors may be driven by greed and increase their investment amounts. This greed often leads investors to blindly follow the trend and ignore risks. However, as experienced investors say: "When everyone is greedy, it may be time to get out." When the price of Bitcoin soared to an all-time high at the end of 2013, many investors were blinded by greed, and as a result, the price dropped. Huge losses were incurred on the pullback.

In the digital currency market, panic and greed often appear alternately, forming a psychological game. Investors need to stay calm, not be influenced by emotions, and analyze market trends rationally. In addition to paying attention to the panic and greed index, investors should also study market fundamentals and technical aspects and formulate long-term investment plans. As Buffett said: "Be fearful when you are greedy, and be greedy when you are fearful." Only on the basis of rational thinking can investors obtain stable returns in the Bitcoin market.

In general, Bitcoin’s panic and greed index reflect investors’ psychological fluctuations and are also important indicators of market sentiment. Investors should learn to control their emotions and avoid blindly following the trend or panic selling, but remain rational and seize market opportunities. On the journey of the digital currency market, rational thinking and steady operations are the keys to long-term profits. May investors find a balance between panic and greed and achieve a win-win situation of wealth growth and spiritual growth.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Before answering the question of whether Bitcoin can be bought in extreme panic, we might as well first briefly understand what this Bitcoin extreme panic index means. In fact, every day, specialized people analyze people's emotions through different sources and data. The index formed by this method is the Bitcoin Fear Index, or the Bitcoin Greed Index. The reason for this index is because the behavior of the cryptocurrency market is very emotional. This index can help us better judge the timing of buying. Many investors want to know whether Bitcoin can be bought in extreme panic? Let the editor of Bitcoin Circle analyze the Bitcoin Panic and Greed Index for everyone.

 Can Bitcoin be bought in extreme panic?

Fear and Greed Index Cryptocurrency market behavior is very emotional. When markets rise, FOMO (fear of missing out) causes people to become greedy. At the same time, people often irrationally sell their currency when they see red numbers. Using the Fear and Greed Index, we can think about:

1. Extreme fear may indicate that investors are too worried, but it may also be a buying opportunity.

2. When investors become too greedy, it also means that the market should adjust.

Conscience and fear can lead to disastrous investment failure. I am greedy when others are fearful, and fearful when others are greedy. This is also the investment approach of "Stock God" Buffett. There have been many reasons for the collapse of Bitcoin. To sum up, there are the following points: 1. Bakkt’s poor performance after its launch. After Bakkt went online, it did not receive a strong response from the market as expected, and the market fell back. Maybe it was a reaction to that. Jeff, chief investment officer of Arca, a Los Angeles asset management company that invests in cryptocurrency
Dorman agreed, commenting that Bakkt’s disappointing start has undoubtedly discouraged some people. He hinted that the price of Bitcoin is easily affected by the news. The mainstream of the cryptocurrency market is still traders who focus on the short-term, and the reported rhetoric is often self-verified.

 Bitcoin Panic and Greed Index Analysis

Cryptocurrency markets behave very emotionally. When prices rise, people tend to become greedy and fear of missing out (FOMO: Fear of missing out)
out, still remember the recently popular fund disk + pyramid scheme game FOMO
3D? FOMO means fear of missing out). Moreover, when the market falls, people tend to sell their assets irrationally. With this panic index, we try to protect you from taking drastic actions.

Extreme panic can serve as a sign that investors are very worried, which can serve as a buying opportunity.

When investors become extremely greedy, it means the market may be at the end of a bull market.

Because, we analyze the sentiment of the Bitcoin market and reflect this data into a simple graph ranging from 0 to 100, with 0 representing extreme panic and 100 representing extreme greed.

I intercepted the price curve of Bitcoin and compared it with the panic index as follows. The time period is from February 1 to August 1, 2018.

You will find that the trends between the two are surprisingly similar. What can we do with this data?

Based on this data, you can make judgments about the recent market. For example, if you compare yesterday's index and find that today's numbers are smaller and people are more panicked, then Bitcoin is likely to fall.

When the fear index is very low, the price of Bitcoin is generally also low, which is a good opportunity to buy. For example, in this picture, the panic index is at a low of around 10, and the Bitcoin price is at $6,000, which is a good time to buy.

When the fear index is very high, people are in a state of greed, and the price of Bitcoin is high at this time. For example, in this picture, the panic index peaked at over 70, and the price of Bitcoin was at its highest level at around $11,000 at that time.

The above is the detailed answer of the editor of the currency circle to the question of whether Bitcoin can be bought in extreme panic, as well as the analysis of the Bitcoin panic and greed index. When Bitcoin’s market capitalization drops, people become greedy and start investing in various altcoins, dreaming of gaining massive wealth in the next bull market. In fact, there are many data sources that affect the Bitcoin Panic and Greed Index. The six different dimensions included in the indicator are volatility, market momentum/trading volume, social media, surveys, market capitalization ratio and keyword trends. Bitcoin Panic The index can be used to judge market conditions and investment opportunities. Everyone must make good use of this indicator for investment.