Bitcoin price drops below $57,000, and the Bitcoin Fear and Greed Index drops to 43, showing a state of fear for the first time since October 1.

After the recent drop in the cryptocurrency market, bitcoin has lost nearly 20% of its value since its all-time high, and general sentiment among investors has changed dramatically.

The Fear and Greed Index moved to the state of fear for the first time in nearly two months.

Fear is back again.

The “Fear & Greed Index” is a metric that follows several factors within the cryptocurrency community to reveal momentary sentiment toward the leading cryptocurrency.

Read:Project Colu plans to purchase all project cryptocurrencies at the ICO price.

These factors include asset volatility, volume, social media comments, and surveys.

The indicator provides scores ranging from 0 (extreme fear) to 100 (extreme greed).

Currently, the scale has fallen to 43, i.e. to the fear zone.

It is noteworthy that the last time the indicator went to this state was on October 1.

At the time, the price of Bitcoin was at around $42,000.

During the month of October, though, the cryptocurrency witnessed major developments, perhaps the most notable of which was the launch of the “ProShares” Bitcoin Futures ETF which is the first futures-backed ETF in the USA. It reached an all-time high of $65,000.

Another factor that has helped bitcoin’s rally in the past two months is the Securities and Exchange Commission’s reassurance that the United States will not ban cryptocurrencies.

In addition, the Russian government has announced that a full crackdown on cryptocurrency (the way China did) is not on its agenda.

Even President Putin has suggested that bitcoin and altcoins could one day become a means of payment.

The first ten days of November were also very successful for Bitcoin.

Read:Samsung announces that it will facilitate the use of the blockchain on its “Galaxy” phones

Last week, the coin’s price jumped to a new all-time high of $69,000, while the market cap touched $1.3 trillion for the first time.

However, the cryptocurrency industry experienced a major correction in the past week, and bitcoin lost some of its steam.

Read:EOS decentralized network applications lose $1 million in 5 months as a result of hacking

At the moment of this writing, bitcoin has recovered some of its losses to trade at $58,600 and investor sentiment has changed to “afraid.”

Is it time to buy the bottom?

While the word fear may sound like a stop sign to some people wanting to enter the cryptocurrency market, it is not always the case.

Many experts in the crypto space believe that having cryptocurrency in this situation or even extreme fear is actually a good buying option.

The third largest Bitcoin whale seems to have the same opinion, as two days ago, they bought another 1,647 Bitcoin at less than $60,000.

The total amount equals nearly $100 million.

Read also:

India will not allow trading of cryptocurrencies that lack government approval

Long-Term Bitcoin Holders Avoid Panic Selling…Details Here