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.”
The sudden drop in the index coincides with the fall in bitcoin price, which is now trading below $10,000. But that could be a “buying opportunity,” according to Alternative.me, while "greed" sentiment in general shows that the market could be "due for a correction."
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%).