Crypto Fear and Greed Index Shows ‘Extreme Fear’ and Shaky Sentiment Persist

Crypto Fear and Greed Index Shows "Extreme Fear" and Shaky Sentiment Persist

For a few weeks now, bitcoin sentiment stemming from the Crypto Fear and Greed Index (CFGI) has been in the “extreme fear” range. While bitcoin gathered some gains on Monday, the CFGI is still in the “extreme fear” position with a ranking score of 16 out of 100. Crypto Fear and Greed Index Remains in ‘Extreme Fear’

Approximately 45 days ago, the Crypto Fear and Greed Index (CFGI) hit the “extreme fear” range with a score of 22. That day, on April 15, the 24-hour bitcoin price range was between $39,823.77 and $40,709.11 per unit. Since then markets tumbled even lower and on May 12, the value of BTC tapped a low at $25,401, which was lower than the previous bottom last summer in July. If someone purchased BTC on May 12, today they would be up more than 24% against the U.S. dollar.

Despite the gains during the past two weeks, the CFGI is still in the “extreme fear” zone and the ranking is even lower than it was on April 15. At the time of writing, the CFGI ranking score is 16 out of 100, but it doesn’t necessarily mean markets will remain gloomy. The CFGI hosted on alternative.me measures market sentiment and the website notes there are two simple assumptions: Extreme fear can be a sign that investors are too worried. That could be a buying opportunity. When Investors are getting too greedy, that means the market is due for a correction.

However, extreme fear can also lead to more capitulation and the so-called buying opportunity may be much lower. Or one could also assume the current time frame is a tiered buying opportunity and people are happy with purchasing BTC on the way down. The CFGI’s simple assumptions are just that, as they may be accepted as truths, but they may not end up coming to fruition.

On the same token, if “investors are getting too greedy,” as the CFGI says, it doesn’t necessarily mean crypto markets will correct. This means if someone took such advice they could be selling BTC at a lower point than what they could have made by waiting. Then again, there’s always the age-old investment advice that says there’s nothing wrong with taking profits along the way.

Crypto market sentiment, at least according to the CFGI, has been in the “extreme fear” region for well over a month. Yesterday, on May 30, the index tapped a ranking score of 10, which means the latest CFGI score of 16 is an improvement. Google Trends metrics for the query “bitcoin” show interest has ticked up from the recent Terra fiasco.

Interestingly, Google Trends (GT) data worldwide indicates that interest in bitcoin was meandering for a while before the Terra LUNA and UST fallout. But during that specific week (May 8-14), GT data shows the search term “bitcoin” skyrocketed to the highest GT score (100) since the second week of June 2021. The week after the Terra LUNA and UST market carnage, however, the GT data score for the term “bitcoin” dropped by 45%. Tags in this story Analysis, April 15, Bitcoin, Bitcoin (BTC), BTC, CFGI, Crypto, Crypto Fear and Greed Index, Crypto markets, data, extreme fear, Fear, Google trends, Greed, Greedy, GT Data, Market Interest, market sentiment, May 12, terra (LUNA)

What do you think about the Crypto Fear and Greed Index tapping a score of 16 and remaining in the “extreme fear” zone? Let us know what you think about this subject in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Biggest Movers: WAVES Nearly 60% Higher, as AXS Surges Close to 25% in Today"s Session MARKET UPDATES | 6 hours ago Bitcoin, Ethereum Technical Analysis: ETH Back Above $2,000 as Crypto Rally Extends MARKET UPDATES | 9 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitcoin, Ethereum Technical Analysis: ETH Back Above $2,000 as Crypto Rally Extends Next articleBiggest Movers: WAVES Nearly 60% Higher, as AXS Surges Close to 25% in Today’s Session Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItToday"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits

As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin