Crypto investors are into ‘extreme fear,’ similar to 2018 crash situation
The present sentiment of the cryptocurrency market is exhibiting “extreme fear,” in accordance to Crypto Fear & Greed Index by Alternative.me.
The index has at the moment hit a low of 10, a degree final seen in August 2019 in addition to in December 2018, when bitcoin crashed to round $three,000. Bitcoin is at the moment buying and selling at about $6,300.
“Extreme fear can be a sign that investors are too worried. That could be a buying opportunity,” stated Alternative.me.
The agency calculates the worth of the Crypto Fear & Greed Index every day, on a scale of zero to 100. Near-zero ranges point out “extreme fear,” whereas near-100 ranges recommend “extreme greed.”
Alternative.me takes into consideration 5 elements for calculating the index: Volatility (weight: 25%), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%) and Trends (10%).