Crypto investors exhibit ‘extreme fear,’ similar to 2018 crash situation
March 30, 2020, 7:05AM EDT
1 min read
The current sentiment of the cryptocurrency market is exhibiting “extreme fear,” according to Crypto Fear & Greed Index by Alternative.me.
The index has today hit a low of 10, a level last seen in August 2019 as well as in December 2018, when bitcoin crashed to around $3,000. Bitcoin is currently trading at about $6,300.
“Extreme fear can be a sign that investors are too worried. That could be a buying opportunity,” said Alternative.me.
The firm calculates the value of the Crypto Fear & Greed Index daily, on a scale of 0 to 100. Near-zero levels indicate “extreme fear,” while near-100 levels suggest “extreme greed.”
Alternative.me 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%).