Currently, the crypto market sentiment is into extreme fear as the fear among the crypto investors hits a low level on the Crypto Fear and Greed Index.
Extreme Fear: a low level of 10
According to the Crypto Fear and Greed Index, the fear level among the crypto investors has reached a low level of 10 exhibiting ‘Extreme Fear’ on the index. The index was updated on 30th March 2020.
Extreme fear among crypto investors indicates that they are too worried. According to Alternative.me:
Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
A similar situation was seen in December 2018 as well
This is the third time since the year 2018 that the Crypto & Greed Index has shown ‘extreme fear’ among the crypto investors. A similar situation was seen in the month of December 2018 when the price value of the leading digital asset crashed to a low level of $3k and the investors started to panic. Such a situation also appeared last year in the month of August. At the moment, the price value of Bitcoin is revolving around the $6k level.
The value of the Crypto Fear & Greed Index is calculated and updated on a daily basis on a scale having 0 to 100 numbers where the level which is very near to 0 suggests “Extreme Fear” while the level near to 100 suggests “Extreme Greed”.
Crypto Fear & Greed Index’s value is calculated on the basis of factors. These are Volatility (weight: 25%), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%) and Trends (10%).