The Crypto Fear & Greed Index, which acts as a cross-market emotion indicator, has hit an all-time low of 8 out of 100 as of May 17. It is weakest since March 2020, when the coronavirus outbreak sparked a market crash.
The Crypto Fear & Greed index is important in the crypto world since it shows broad market emotions and forecasts price movement. Higher numbers indicate that there are a lot of buyers.
Lower values elsewhere imply that investors are wary of getting engaged in the crypto industry with only a few sellers.
The present intense panic might signify a huge market trend reversal. After reaching a peak score of 60 for 2022, the index has dropped dramatically in recent weeks.
Will Bitcoin hold a $30,000 spot?
Despite slight advances exceeding $30,000, the great anxiety persists. The asset was trading for $30487, up over 2% in the previous 24 hours. There is a widespread belief that if Bitcoin fails to maintain the $30,000 mark, it will suffer greater losses, perhaps leading to further selling.
Despite the recent huge downturn, Bitcoin jumped beyond the $40,000 mark in early May. The news came after the Federal Reserve said that it will hike interest rates by 50 basis points rather than 75. The market fell into anxiety as the profits were short-lived.
Bitcoin has largely leaned towards the worry zone since the beginning of the year; however, the market’s latest negative price action has driven it into a crisis.
