The Cryptocurrency Fear and Greed Index, which measures market sentiment toward Bitcoin, fell

The Cryptocurrency Fear and Greed Index, which measures market sentiment toward Bitcoin (BTC) and the broader cryptocurrency industry, fell to its lowest level in nearly 18 months.

The index fell 21 points on June 24, reaching “fear” territory, representing one of the largest daily declines in recent years.

It was last in the fear zone (a score between 24 and 50) about seven weeks ago on May 3, but has not reached a score below 30 since January 11, 2023, when Bitcoin was trading at $17,200 just two months later. Cryptocurrency exchange FTX collapses.

This time last week, the score was 74 in the “greed” zone.

Bitcoin is currently trading at $60,300 after falling to a seven-week low on June 24.

The negative sentiment came amid outflows from Bitcoin spot ETFs – more than $1 billion in the last 10 trading days, and reports that MT Gox may be preparing to sell for 8, $5 billion worth of Bitcoin to its creditors, while Germany has started selling off some of its assets. . Bitcoin reserves as well.

However, an official at cryptocurrency investment firm Galaxy Digital believes the market may be slightly overreacting to Mt.Gox’s concerns.

Bitcoin miners were selling more Bitcoin than usual amid a falling network hashrate, which may also have helped dampen market sentiment.

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The Crypto Fear and Greed Index influences market volatility (25%), trading volume (25%), Bitcoin dominance (10%), and trends (10%). It was formerly used to calculate surveys (15%), but this measure is currently abandoned.

The score has generally been trending downward since reaching an “extreme greed” score of 90 on March 5, when Bitcoin surpassed its all-time high of $69,000 in November 2021.

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