BTC Fear and Greed Indicator Avoids Sub-20 Despite FTX Hack and BTC Loss

News of the FTX hack left Bitcoin and the broader market in negative territory on Saturday. FTX’s recent failure came as investors worried about the risks of contagion. After news of BlockFi’s frozen withdrawals, more platforms are likely to feel the effects of the FTX collapse.

The lack of updates also affected the rescue plan. in an interview With Bloomberg TV, Justin Sun discussed the need to work slowly and conduct full due diligence before making any proposals.

Today, FTX-related updates will continue to be the main driver. We expect more divergence signals to put Bitcoin under greater pressure.

The Fear and Greed Index defies gravity with a height of 22/100

Today the Fear and Greed Index rose from 21/100 to 22/100. The increase came despite BTC seeing red for the sixth day out of the seventh. However, the index is still deep in the area of ‚Äč‚Äčintense fear, reflecting sentiment against the collapse of FTX.

While the index continued to avoid below 20, the index fell below 10 in May after the collapse of Terra. Investors’ resilience could collapse if the infection spreads quickly.

Today, the FTX story remains the main driving force. While investors are watching for signs of contagion, they are also hoping to rescue FTX.

The indicator will need to avoid sub-20/100 to support a return to 40 and a move to the neutral zone. However, another drop below 20/100 could put BTC at risk below $10,000.

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