Bitcoin investors suddenly exhibit ‘extreme fear,’ similar to Dec. 2018 situation
The current sentiment of the cryptocurrency market is showing “extreme fear,” according to Crypto Fear & Greed Index by data platform Alternative.me.
The index hit a 244-day low yesterday at 11, a level last seen on Dec. 13, 2018, when the bitcoin price plunged to around $3,000. Just last week, particularly on Aug. 6, the index was as high as 66, reflecting “greed.”
Interestingly, according to Coinbase's data, 67% of customers with large bitcoin holdings (top 10%) are buying rather than selling in the last 24 hours.
Alternative.me calculates the value of Crypto Fear & Greed Index on a daily basis on a scale of 0 to 100. Zero means “extreme fear,” while 100 means "extreme greed".
The platform takes into consideration five factors for calculating the index: Volatility (weight: 25%), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%) and Trends (10%).