The Crypto Fear and Greed Index reached its lowest value in history. As Bitcoin hovers below $10,000, investors fear the potential for further decline could jeopardize the idea that a new bull market materialized.
“Extreme fear” around the crypto market
Bitcoin’s volatility caught the market by surprise. Many investors saw the recent upswing that took BTC to nearly $11,000 as a sign that BTC is posed to make new yearly highs. Even the CEO of Binance Changpeng Zhao, told his followers on Twitter to “slap themselves” if they had sold Bitcoin under $10,000.
Again and again https://t.co/3q1iVyk24X
— CZ Binance (@cz_binance) August 16, 2019
Despite the bullishness perceived across the market just a few days ago, Bitcoin plummeted 11 percent turning the market sentiment into “extreme fear,” according to the Crypto Fear and Greed Index (CFGI).
This technical indicator analyzes the emotions and sentiments from different sources, such as volatility, volume, social media, surveys, and market dominance. These values are combined into one simple number. A value of 0 means “extreme fear” while a value of 100 represents “extreme greed.”
The CFGI is currently on a 5 (extreme fear), which is the lowest value it has reached since its inception in Feb. 2018. The last time this technical index hit such a low value was in Feb. 6, 2018, when it was at 8. During this time, Bitcoin dropped nearly 50 percent from $11,570 to $5,870. Following the downward movement BTC rose 100 percent to reach $11,775 on Feb. 20, 2018.
After Ali began forex trading in 2012 In 2014, he came across Bitcoin’s whitepaper and was so fascinated by the idea of a decentralized, borderless, and censorship-resistant currency that he started buying Bitcoin. By 2015, he started traveling to spread the word about Bitcoin.
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