Crypto investors exhibit ‘extreme greed’ as bitcoin crosses $18,000
The current sentiment of the cryptocurrency market is showing “extreme greed,” according to Crypto Fear & Greed Index by tracker Alternative.me.
The index has hit a high of 91 points, its largest since June 26, 2019, as bitcoin continues to soar. About a month ago, the index was exhibiting “fear,” at around 50 points.
The extreme greed comes as bitcoin is touching new heights. It has now crossed the $18,000 mark, according to TradingView. The surge to $18,000 occurred fast, within a few hours, as bitcoin was trading at around $17,000 levels a day ago.
When crypto investors get too greedy, that means the market is due for a correction, according to Alternative.me. The firm calculates the value of the fear and greed index daily on a scale of 0 to 100. Near-zero levels mean “extreme fear,” while around 100 means “extreme greed.”
Alternative.me takes into consideration five factors for calculating the index: Volatility (weight: 25%), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%) and Trends (10%).
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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Author: Yogita Khatri