The Crypto Fear & Greed Index Plunges into the “Fear” Zone

The cryptocurrency Fear and Greed Index, which measures market sentiment for Bitcoin and the overall cryptocurrency industry, has dropped to its lowest level in nearly 18 months.

The Crypto Fear & Greed Index Plunges Into The Fear Zone

On June 24, the Crypto Fear and Greed Index plummeted by 21 points, plunging into the “Fear” zone. This marked one of the largest single-day drops in recent years. The last time the index entered the “Fear” zone (with a score between 24 and 50) was about seven weeks ago, on May 3.

Fear & Greed Index
Fear & Greed Index

Prior to this, the index hadn’t dipped below 30 since January 11, 2023, when Bitcoin was trading at $17,200, just two months after the collapse of the crypto exchange FTX.

Just a week ago, the index was still in the “Greed” zone with a score of 74.

Currently, Bitcoin is trading around $60,300 after hitting a seven-week low on June 24. Negative sentiment has arisen amidst significant sell-offs of over $1 billion in Bitcoin ETFs over the last 10 trading days, news that Mt. Gox might be preparing to sell $8.5 billion worth of Bitcoin to settle with its creditors, and Germany starting to liquidate part of its Bitcoin reserves.

Related: Willy Woo Explains Why Bitcoin Cannot Recover

However, an executive at the cryptocurrency investment firm Galaxy Digital believes the market may be overreacting to the concerns surrounding Mt. Gox.

Additionally, Bitcoin miners have been selling more Bitcoin than usual as the network’s hashrate tumbles, further contributing to the weakening market sentiment.

Change In Crypto Fear & Greed Index Score Over The Last 12 Months
Change In Crypto Fear & Greed Index Score Over The Last 12 Months

The Crypto Fear & Greed Index factors in elements such as market volatility (25%), trading volume (25%), Bitcoin’s dominance (10%), and market trends (10%). Previously, it also considered survey results (15%), but this metric is currently paused.

The index has been trending downward since reaching an “Extreme Greed” score of 90 on March 5, when Bitcoin surpassed its previous all-time high price of $69,000 set back in November 2021.

5.0/5

(1 vote)

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest

Binance Announces Listing Of Banana Gun (banana)

News | Altcoin | Editor Choice

Binance Announces Listing of Banana Gun (BANANA)

The Binance exchange has announced the listing of Banana Gun (BANANA), and this is also the first project on the Binance Airdrops Portal!

Azcnews Whales Accumulate Dogecoin Amid Price Recovery

News | Altcoin | Editor Choice

Whales Accumulate Dogecoin Amid Price Recovery

Recently, Dogecoin investors have accumulated over 60 million tokens. Some analysts believe the current price drop is only temporary.

Pixelverse Officially Announces Pixfi Token Airdrop

Editor Choice | Altcoin | News

Pixelverse Officially Announces PIXFI Token Airdrop

The renowned game Pixelverse, which has attracted close to 80 million users, has finally announced an airdrop for the community through PixelTap and the Dashboard.

Azcnews Bitcoin Drops To $64,000 Amid Us Stock Market Plunge

News | Bitcoin | Editor Choice

Bitcoin Drops to $64,000 Amid U.S. Stock Market Plunge

Bitcoin has corrected back below $64,000 as the U.S. stock market experiences a sharp decline.

Claim Dogs Airdrop (update) And Predict Dogs Price

Editor Choice | Airdrops

Get Free Dogs Airdrop (Update) and Predict Dogs Price

Continuing the mission with Dogs on Telegram, participants of the Dogs Airdrop or those who access the platform and connect their TON wallets. Additionally, predict the price of Dogs upon its listing.