The total crypto market slipped into the fear index for the first time since October following geopolitical tensions caused by Tariffs and counter-tariffs.
The United States, under Donald Trump, is locked in a tariff standoff with Canada and Mexico, sending the traditional financial market into a downward spiral.
Top technical analyst Ali Martinez pointed out that the total crypto market has slipped into a fear index for the first time since October.
The Respected analyst shared a chart showing the fear and Greed index and how the market is currently in the fear index.
At the time of the report, Bitcoin had recovered by 4.7%, exchanging hands for $99,000, while ethereum surged by 10.2%, exchanging hands for $2,826.
US turns to China in Tariff War
China is the latest victim of Donald Trump’s tariff following a shoddy agreement between Canada and Mexico
The United States implemented a 10% tariff on imports from China on Feb 4 as part of a broader strategy to address national security concerns, particularly the influx of illegal drugs like fentanyl.
In response, China announced retaliatory measures, including a 15% tariff on U.S. coal and liquefied natural gas (LNG) and a 0% tariff on U.S. crude oil and agricultural machinery*. Additionally, China initiated an antitrust investigation into Google.
These developments have heightened tensions between the two nations, with potential implications for global trade dynamics.
Fear and Greed Index
The Fear and Greed Index is a sentiment analysis tool that measures investor emotions in the cryptocurrency market, ranging from extreme fear to extreme greed.
It helps traders gauge market sentiment and make informed decisions based on overall investor psychology.
The Index is influenced by a host of factors including Social media sentiment, Volatility, Bitcoin dominance, and market momentum.
The Index tilts between two extremes.
Extreme Fear Often signals a buying opportunity as prices are undervalued.
Extreme Greed Often precedes a market correction due to overvaluation and hype.
The index is an important aspect of fundamental analysis that could help traders make a good entry point.
