For the past few weeks, bitcoin sentiment derived from the Crypto Fear and Greed Index (CFGI) has been in the “extreme fear” range. While Bitcoin rallied somewhat on Monday, the CFGI is still in the “extreme fear” position with a ranking score of 16 out of 100.
The Crypto Fear and Greed Index remains in “Extreme Fear”
About 45 days ago,the Crypto Fear and Greed Index (CFGI)entered the “Extreme Fear” range with a score of 22. On that day, April 15, the 24-hour bitcoin price range was between $39,823.77 and $40,709.11 per unit. The market then crashed further, and on May 12, the value ofBTChit $25,401, lower than the previous bottom last summer in July. If someone purchasedBTCon May 12, it would be up over 24% against the USD today.
Despite the gains of the past two weeks, CFGI is still in the “extreme fear” zone, ranking even lower than on April 15. As of this writing, the CFGI ranking score of 16 out of 100 does not necessarily mean that the market remains gloomy; the CFGI, hosted on alternative.me, measures market sentiment, and the site makes two simple assumptions It points out.
However, extreme fear could lead to more capitulation and lower so-called buying opportunities. Alternatively, one could assume that the current timeframe is a phased buying opportunity and people are happy to buyBTCon the way down; CFGI’s simple assumption may be accepted as truth, but it is only an assumption because it may not come true after all It is.
By the same token, if, as CFGI says, “investors are too greedy,” that does not necessarily mean that the crypto market will correct. It means that if someone took such advice, they could sellBTCat a lower point than what they could have gotten by waiting. Then again, there is always the age old investment advice that there is nothing wrong with taking a profit along the way.
Sentiment in the crypto market has been in “extreme fear” territory for over a month, at least according to CFGI. Yesterday, May 30, the index hit a ranking score of 10, meaning that the latest CFGI score of 16 is an improvement; the Google Trends index for the query “bitcoin” shows growing interest from the recent Terra fiasco.
Interestingly,Global Google Trends (GT) datashows that interest in Bitcoin had been meandering for some time prior to the Terra Luna and UST debacle. However, during that particular week (May 8-14), the GT data shows that the search term “bitcoin” soared to its highest GT score (100) since the second week of June 2021. However, in the week following the Terra LUNA and UST market catastrophe, the GT data score for the term “bitcoin” dropped 45%.
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