Why is modernity bias to amplify fear about the price of bitcoin

The fear and greed index fell to 25 yesterday, indicating “extreme fear” in the cryptocurrency market. However, the analyst notes that the current panic may be exaggerated, largely driven by the bias of modernity.

This comes because Bitcoin moves in the market Volatility The result of the wider macroeconomic conditions. The leading cryptocurrency has decreased by 11.4 % so far, reflecting the broader feelings of fear and uncertainty.

Does modernity prejudice fear about the price of bitcoin?

In the latest X (formerly on Twitter), Lark Davis analyst is an interesting trend in the Crypto Fear and Greed index. this Measurement measurement measures market emotions From 0 (intense fear) to 100 (extreme greed).

On April 3, he decreased to its lowest level The growing anxiety among investorsAlthough Bitcoin was trading about $ 80,000. In fact, the latest value of 28 also indicated a great fear among the market participants.

However, according to Davis, the feelings were not in place, Looking at the performance of the bitcoin price. He pointed out that the decrease in the index contradicts the conditions of the market six months ago. Although Bitcoin trading at $ 65,000, the index showed a neutral reading at the time.

“This is called” the bias of modernity “, and you can benefit from it,” it is books.

As for the context, the bias of modernity indicates the tendency of investors or merchants to give more weight Modern events or information when making decisions While ignoring the long -term trends or data. This psychological prejudice often leads to excessive reaction to short -term market movements, such as a sudden rise or collapse.

“For this reason, we see higher readings in 80,000 dollars today, of $ 65,000 yesterday,” David noted.

He suggested that the fear seen in the market has nothing to justify it completely and that the reactions to the short -term fluctuations are often more extreme than necessary.

This coincides with the continuation of bitcoin in seeing the fluctuations in the middle President Trump’s introductory plans Fears of potential stagnation. While it is still relatively fixed Compared to traditional markets, the decrease in the value of Bitcoin remains doubts about its stability and its long -term capabilities.

It is worth noting that Michael Sailor, the head of the strategy (formerly Microstrategy), highlighted that short -term fluctuations do not reflect the capabilities of Bitcoin in the long run.

“Bitcoin is the most volatile because it is very useful”, ” He said.

Silor explained that bitcoin fluctuation is largely Because of the liquidity and the availability of 24/7, Which means that it is more likely to sell fast during panic in the market. However, he repeated Silor that while Bitcoin behaves like a short -term risk of riskIts long -term value is not affected by these fluctuations, which enhances its role as a value store.

Meanwhile, Arthur Hayes, former CEO of Bitmex, presented another perspective in the continuous market conditions.

“Some of you run, but I love the definitions,” Heiz I mentioned.

According to Hayez, global economic imbalances will eventually be corrected. While the short -term market pain is inevitable, Hayes expects that the solution is likely to include printing more money, which is seen as beneficial to Bitcoin.

“$ Weaken alongside foreigners who sell American technology shares and bring money to the home. This is a good thing for BTC and the medium term,” is Expected.

His comments are aligned With the latest Beincrypto report on the reverse link Between the US dollar index (DXY) and BTC. Thus, the decline can be useful in the last.

Currently, Bitcoin continues to see modest losses. Last week, it decreased by 4.5 %. Meanwhile, the currency threw 1.0 % of its value during the past day. At the time of writing this report, Bitcoin was trading at $ 82,855.