Crypto Fear and Greed Index Hits 18-Month Low Amid Market Uncertainty
Summary:
The Crypto Fear and Greed Index, which gauges Bitcoin and broader cryptocurrency market sentiment, has dipped to an 18-month low, notably descending into the "Fear" zone. The downturn coincides with $1 billion outflows from exchange-traded funds and anxieties around Mt. Gox's potential Bitcoin sale. The latest Bitcoin value has fallen to a seven-week low of $60,300. Despite this, an executive at Galaxy Digital suggests the market may be overreacting to the Mt. Gox situation.
The Crypto Fear and Greed Index, a barometer for Bitcoin (BTC) and wider cryptocurrency market moods, has plunged to its lowest level in almost a year and a half. The Index experienced a 21-point drop on June 24, entering the "Fear" territory, indicative of one of the biggest day-on-day declines observed in recent times. The last time the Index descended to the Fear territory (a score between 24 and 50) was approximately seven weeks back on May 3. However, the Index hasn't seen a score less than 30 since January 11, 2023, when Bitcoin was pegged at $17,200 following the crash of the FTX crypto exchange. As of last week, the score stood at 74 in the "Greed" territory. Crypto Fear & Greed Index score. Source: Alternative.me. Currently, Bitcoin's value is at $60,300, having fallen to a seven-week low on June 24. This downturn in market sentiment coincides with spot Bitcoin exchange-traded funds facing outflows of over $1 billion in the last ten trading days and growing concerns over Mt. Gox's possible sale of $8.5 billion in Bitcoin to its creditors, and Germany also began offloading some of its Bitcoin reserves. But, according to a Galaxy Digital executive, the market may be slightly overreacting to the Mt. Gox situation. Source: Samson Mow. Bitcoin miners have been offloading Bitcoin at an increased rate due to a declining network hashrate, which may have exacerbated the weakening market sentiment. Related: Can $60K BTC price support hold? 5 things to know in Bitcoin this week. The Crypto Fear & Greed Index considers market volatility (25%), trading volume (25%), Bitcoin dominance (10%), and industry trends (10%). It used to also account for surveys (15%) - though this component is currently on hold. Change in Crypto Fear & Greed Index score over the last 12 months. Source: Alternative.me. Since securing a score of 90 or "Extreme Greed" on March 5, when Bitcoin broke its previous record high of $69,000 set in November 2021, the score has largely followed a downward trajectory. Magazine: 'Bitcoin Layer 2s' aren't really L2s at all: Here's why that matters.
Published At
6/25/2024 4:46:28 AM
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