Author: Brayden Lindrea, CoinTelegraph; Translated by: Wuzhu, Golden Finance
The Crypto Fear and Greed Index, a gauge of market sentiment around 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 “fear” territory — 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 hasn’t 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, bitcoin spot exchange-traded funds have seen outflows of more than $1 billion, news that Mt. Gox may be preparing to pay creditors $8.5 billion worth of bitcoin, and Germany's move to sell off some of its bitcoin reserves have fueled negative sentiment.
However, an executive at cryptocurrency investment firm Galaxy Digital believes that market concerns about Mt. Gox may be a bit overreacting.
Source: Samson Mow
As the network's hash rate plummeted, Bitcoin miners sold more Bitcoin than usual, which may also have contributed to the weak market sentiment.
The Crypto Fear and Greed Index takes into account market volatility (25%), volume (25%), Bitcoin dominance (10%), and trend (10%). It used to take into account surveys (15%), but that metric is currently on hold.
Changes in the Crypto Fear and Greed Index scores over the past 12 months. Source: Alternative.me
The “Extreme Greed” score has been trending downward since reaching 90 on March 5, when Bitcoin surpassed its all-time high price of $69,000 set in November 2021.
