Bitcoin (BTC), dipping nearly 20% from all-time highs, has finally taken its toll on market sentiment – investors are now “scared”.
According to the Crypto Fear & Greed Index, overnight losses on November 19th removed the last traces of “greed” from traders’ minds.
From “greed” to “fear” in two days
As BTC price action turned down this week, sentiment caught up as the spot price contrasted with the still bullish signals from the markets.
Derivatives traders have found themselves – and in some cases still are – in a period of exuberance, with some still betting on a short-term, dramatic rally.
The overall sentiment, as measured by the Crypto Fear & Greed Index, has now changed to more closely match the spot.
At the time of writing, the index was only 34/100 – which stands for “fear” – after dipping a full 20 points overnight.
The sharp decline contrasts sharply with behavior over the past two months, when the index lingered in the greed realm around the low 1970s.
As a result, investors are now the most fearful since the end of September, just before Bitcoin began its surge to recent all-time highs.
Old hands are firm
Some investors may be more afraid than others.
Related: Bitcoin Clings To $ 56,000 As Whales Keep Buying – Watch These BTC Price Levels
As Cointelegraph noted, whales have been piling up even though prices have continued to fall, while a clear distinction is also evident between old and new humors.
This is underscored by numbers that show the total percentage of BTC supply that is currently unprofitable.
As on-chain analytics firm Glassnode noted, Long Term Holders (LTH) have made minimal sales lately, holding only 3% of supply, which is currently unprofitable.
Short-Term Holders (STH) – coins that have moved in the past 155 days – have carried the brunt of the sell-off.
“STHs that bought the top are currently holding the bulk of all BTC with an unrealized loss,” wrote Glassnode in Twitter comments on Friday.