The Crypto Concern and Greed Index, which measures market sentiment for Bitcoin (BTC) and the broader cryptocurrency trade, has tanked to its lowest rating in almost 18 months.
The index fell 21 factors on June 24, reaching into the “Concern” zone — marking one of many greatest day-to-day drops lately.
It was final within the Concern zone (a rating between 24 and 50) round seven weeks in the past, Might 3, nevertheless it hasn’t hit a rating under 30 since Jan. 11, 2023, when Bitcoin was buying and selling at $17,200 solely two months after the collapse of crypto trade FTX.
This time final week, the rating was 74 within the “Greed” zone.
Bitcoin is currently trading at $60,300 after falling to a seven-week low on June 24.
Negative sentiment has come amid outflows from spot Bitcoin exchange-traded funds — over $1 billion throughout the final 10 buying and selling days, information that Mt. Gox could be preparing to promote $8.5 billion value of Bitcoin to its collectors, whereas Germany started selling a few of its Bitcoin reserves too.
Nevertheless, an govt at cryptocurrency funding agency Galaxy Digital believes the market could also be barely overreacting to the Mt. Gox considerations.
Bitcoin miners have been promoting off extra Bitcoin than typical amid a tumbling community hashrate, which can have additionally contributed to weakening market sentiment.
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The Crypto Fear & Greed Index components in market volatility (25%), buying and selling quantity (25%), Bitcoin’s dominance (10%) and developments (10%). It used to consider surveys (15%) — nonetheless that metric is presently paused.
The rating has principally been trending downward because it notched a rating of 90 “Excessive Greed” on March 5, when Bitcoin surpassed its previous all-time high value of $69,000 set again in November 2021.
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