Mr. Tapiero, in his most recent tweets, expressed that the present stock market sentiment touched the level of 0, which is ‘Extreme Bearish’ (‘Buy’). Regarding market psychology, this means ‘Extreme Fear’.
Enough Blood Shed
The undisputed expert contrasted the continuous depression with the painful drop of 2008 and featured that these days, the losses are highly sensitive. As indicated by Dan Tapiero, the crisis that occurred around before 12 years ‘resembles a little plunge’ from his perspective.
No capitulation?? Some have suggested in previous thread that there is currently not enough "blood in the streets." Perhaps, but on this metric, 08 looks like a little dip. Plenty of fear and "blood" accompanied this liquidation. Rates staying at 0, gold and #Bitcoin to benefit. pic.twitter.com/5hHzFCtQyb
— Dan Tapiero (@DTAPCAP) April 3, 2020
Just Two Assets May Profit by This Carnage – Bitcoin and Gold
Tapiero likewise illustrated that this situation might go about as a decent premise to ‘buy’ since the base could already be in –
“Buying things at 0 has worked out pretty well for me in the long term.”
Extreme Fear Might Turn Into Massive Greed
While the trading network is still inadequate with regards to the consensus on whether the Fear and Greed records originate from the stock analysis work for virtual currencies, this is the main crisis that these indicators were in the spotlight for the two segments. The alternative Fear & Greed citation for the crypto markets is recouping quickly from the sub-10 zones.
While the crypto trading index touched the 5 point level after the wild Black Thursday, it is presently around 12 points throughout the previous 14 days. Notwithstanding, it is significant that it was ‘Impartial’ just five weeks back.
This downturn is affirmed by the exactness of the “Amygdala Overdrive Relationship” law for crypto-stock connection, which was structured by Charles Edwards of Capriole Investments. As per the law –
“When markets are in Extreme Greed: investors are attracted to risky assets and Bitcoin performance correlates with equities, or when markets are in Extreme Fear: investors dump risky assets and Bitcoin performance correlates with equities.”