Crypto Fear and Greed Index Still in “Extreme Fear” Since The Market Depreciation Recently

On January 8, 2022, the price of bitcoin fell to $40,517 per unit shortly after 1 p.m. (EST). The CFGI score is a 10 according to the Crypto Fear & Greed Index (CFGI), and the last time the CFGI value was this low was 171 days ago, on July 21, 2021.

The Crypto Fear and Greed Index (CFGI) is a daily snapshot of the general market sentiment within the crypto space based on different weighted factors like volatility, market volume, social media, dominance, and trends. CFGI aims to eliminate emotional outbursts and allow crypto investors to make more reasonable decisions in a market area that is more volatile than others.

To control inflation in the United States, the Federal Reserve will begin raising interest rates shortly. Furthermore, all financial markets, including cryptocurrency, were impacted by Omicron. Maybe these are the reasons why BTC dropped more than 39% from its all-time high (ATH) on November 10, 2021, two months ago.

On January 8, the Crypto Fear & Greed Index score was a 10, and this score was 21 last week and 29 three months ago. Today, January 10, the CFGI score is 23.

The decrease of CFGI recently is due to the decline of the market in general and bitcoin price in particular. Because we can’t foresee how the market will react in the near future, we recommend that you tread cautiously while making financial decisions.

Last Saturday, Bitcoin’s global trade volume was at $23.6 billion. Tether (USDT) is BTC’s most popular trading pair, accounting for 61.46% of total trades. USD (14.73%), BUSD (6.79 %), KRW (3.64%), JPY (3.27%), and EUR are the next most popular currencies (3.21%).

The CFGI is a valuable tool. However, it’s only a single data point to help holders and traders alike evaluate the crypto markets with a bit less emotion and a bit more understanding during a period. The FGI should not be the only reason to make your investment decision.

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