#数字资产市场洞察 The panic index has been negative for 18 consecutive days. What exactly is happening in the market?

How outrageous is the recent sentiment index in the crypto market? The "Fear and Greed Index" has remained in the "Extreme Fear" zone for 18 consecutive days, marking the longest period of panic since last November. From November to now, for more than half a year, the market mentality has been on the brink of collapse.

Strange things are happening. Under this blanket of despair, the total market capitalization of the crypto market surprisingly remains stable at $2.97 trillion, and even more astonishingly - the 24-hour trading volume of perpetual contracts surged by 31%. What is the logic behind this? On one hand, retail investors are hit by panic and are frantically cutting losses to escape, while on the other hand, institutional funds are quietly picking up bargains.

Historically, whenever the market falls into such prolonged extreme fear, it usually is not the end of a bear market, but rather an accumulation before a reversal of sentiment. Those with a keen sense for market movements may be taking advantage of this wave of extreme emotion to position themselves at lower levels.

The candlestick charts of mainstream cryptocurrencies like BTC and ETH may look grim, but value investors know that real opportunities are often hidden at the bottom of panic. Instead of being fixated on the market and following the trend to cut losses, it's better to focus on those tracks and projects that do not sway with market sentiment and can continuously generate real value.

Short-term emotions can be deceiving, but long-term fundamentals and community building never lie. What do you think about the current situation?