Last days Bitcoin Price Causing Fear for Further Declines
The Crypto Fear and Greed Index (CFGI), indicating the moods on the cryptocurrency market, is at record lows this year. Today Bitcoin is worrying investors.
On August 14, the Bitcoin CFGI index reached its lowest level since December 2018.
Does the last Bitcoin price decline cause fear?
The index examines sentiment by analyzing: exchange rate volatility, market volumes, social media sentiment, survey results and general trends. On this basis, it calculates an indicator that is in the range of 0 to 100. The bottom of the scale indicates “extreme fear”, while the top is “greed”, in other words – a very strong desire to buy.
At the end of June, cryptocurrency investors were simply ecstatic. Optimism on CFGI reached as much as 95.
At the time of writing, the index is at level 31. You can follow it here .
Current low levels have not been seen since December 2018, i.e. since Bitcoin cost even less than USD 3,500.
CFGI historical data shows that the turning point from “greedy optimism” to anxiety occurred on July 10-12, when sentiment dropped from 84 to 33 in just 48 hours. This coincides with a sharp drop from almost USD 13,000 to below USD 11,600.
Over the past 30 days, the highest index value was 64 – which meant a temporary revival of moods over several days in early August.
Cryptocurrencies as a safe haven?
Despite this growing skepticism, Bitcoin is still referred to in the media debate as a safe haven for the crisis. Due to the fact that the cryptocurrency has recently passed into a speculative asset, this may be very surprising.
Tom Lee from Fundstrat, asked on Fox Business whether BTC deserves to be called, replied:
“You can see it in the markets. Where there is confusion, local bitcoin prices tend to soar and trade at a premium because people are trying to find ways to protect their money. So [answer is]yes. “
Travis Kling from the American hedge fund Ikigai Asset Management has a different opinion.
“It may be that BTC is strong enough to swim in the pool now, but not in the ocean”
He said recently, suggesting that BTC is not yet ready to become the equivalent of gold.
Do you think the Bitcoin price will rise soon or we are are going down?
Feel free to post your opinion in the comments below.