Home Markets Crypto Fear and Greed Index Shows Market Sentiment Remains Scary – Bitcoin News Market Updates

Crypto Fear and Greed Index Shows Market Sentiment Remains Scary – Bitcoin News Market Updates

Crypto Fear and Greed Index Shows Market Sentiment Remains Scary – Bitcoin News Market Updates

After the Crypto Fear and Greed Index (CFGI) fell to significant lows and indicated “extreme fear” in crypto markets in late May and most of June, today , the CFGI rating is still in the “fear” zone, but it has seen improvement. On June 19, the CFGI rating reached a low score of 6, meaning “extreme fear,” and 61 days or two months later, the CFGI rating now shows a score of 33, or “fear.”

CFGI Ranking Score Shows Crypto Winter Continues To Keep Investor Sentiment In The “Fear” Zone

As the crypto-economy climbed back above the $1 trillion range, prices started falling again after the last rally. Following the implosion of the Terra blockchain, the crypto-economy lost significant value and extreme fear shook the community in June as well. The Crypto Fear and Greed Index (CFGI) hosted on alternative.me fell sharply at the time, and on May 31, 2022, Bitcoin.com News reported that the CFGI leaderboard score was 16 out of 100 or “extreme scare.”

Crypto Fear and Greed Index Shows Market Sentiment Remains Scary

Every day, the CFGI Ranking Score analyzes “emotions and feelings from different sources and aggregates them into a single number.” Alternative.me indicates that a value of 0 means “Extreme Fear” while a value of 100 represents “Extreme Greed”. The site adds:

The crypto market [behavior] is very emotional. People tend to get greedy when the market is up, which translates to FOMO (Fear of missing out). Also, people often sell their coins as an irrational reaction [to] see red numbers — There are two simple hypotheses: 1) Extreme fear may be a sign that investors are too worried. This could be a buying opportunity. 2) When investors get too greedy, it means the market needs to correct.

In mid-June, the CFGI rankings score dropped even lower and slipped to a low score of 6 out of 100 on June 19, 2022. Historical Crypto Price Data show that BTC was trading at $20,553 per unit that day and the day before June 18, BTC hit a 2022 low of $17,593 per unit. Today, the CFGI ranking score has improved and the sentiment value has moved from the “extreme fear” position to the “fear” zone with a score of 33 out of 100.

BTC managed to recover some losses after the market routs in May and June, and on August 14, 2022 the price reached $25,212 per unit. On the same day, the CFGI rankings score rose to 47, showing that sentiment was turning. However, in the past 48 hours, BTC has dropped significantly in value, slipping from $23,593 per share to today’s low $21,268. The CFGI rating failed to rise above the “fear” zone and appears to be climbing back into the “extreme fear” score range.

Keywords in this story

Analysis, Bitcoin, Bitcoin (BTC), Bitcoin Markets, BTC, BTC Market Sentiment, CFGI, CFGI Rank Score, Crypto, fear of crypto, Crypto Fear and Greed Index, crypto market update, Crypto Markets, Data, extreme fear, To fear, Greed, Glutton, Market interest, Market sentiment, Markets, Price

What do you think of the recent CFGI ranking score and the crypto economy plunging again in USD value? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news manager for Bitcoin.com News and a fintech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News about disruptive protocols emerging today.

Image credits: Shutterstock, Pixabay, Wiki Commons, CFGI via Alternative.me

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