Author: Brayden Lindrea, CoinTelegraph; Compiled by Wuzhu, Golden Finance
The Cryptocurrency Fear and Greed Index, which measures market sentiment for Bitcoin and the broader cryptocurrency industry, has fallen to its lowest level in nearly 18 months.
On June 24, the index fell 21 points into the “fear” zone — one of the biggest one-day declines in recent years.
The last time it was in the fear zone (between 24 and 50) was on May 3, about seven weeks ago, but it has not fallen below 30 points since January 11, 2023, when Bitcoin was trading at $17,200, just two months after the collapse of cryptocurrency exchange FTX.
This time last week, the Greed Index had a score of 74.
Crypto Fear and Greed Index Score. Source: Alternative.me
Bitcoin is currently trading at $60,300 after falling to a seven-week low on June 24.
Over the past 10 trading days, outflows from bitcoin spot exchange-traded funds exceeded $1 billion, news that Mt. Gox may be preparing to compensate creditors with $8.5 billion worth of bitcoin, and Germany has also begun selling some of its bitcoin reserves, all of which have fueled negative sentiment.
However, an executive at cryptocurrency investment firm Galaxy Digital believes that the market may be overreacting to concerns about Mt. Gox.
Source: Samson Mow
Bitcoin miners sold more Bitcoin than usual as the network hashrate plummeted, which may also have contributed to weak sentiment.
The Crypto Fear and Greed Index takes into account market volatility (25%), trading volume (25%), Bitcoin dominance (10%), and trend (10%). It had considered an investigation (15%), but this indicator is currently on hold.
Changes in the Crypto Fear & Greed Index score over the past 12 months. Source: Alternative.me
The score has been trending downward since reaching 90 for "extreme greed" on March 5, when Bitcoin surpassed its all-time high price of $69,000 set in November 2021.
XingChi
