Crypto players’ fear index soars
The concerns in the cryptocurrency market during this period are likened to the dotcom bubble period and the 2008 global financial crisis.
This morning, price Bitcoin remains below $30,000. Although the market is no longer wobbly like last week, the psychology of players is still going down.
Fear & Greed Index by Alternative Statistics show that users’ fear of Bitcoin and other cryptocurrencies is dropping to a record level, since March 2020. On May 17, this index dropped to the 8th scale, and the weekly average was 12.
Fear & Greed is scored on a scale from 0 to 100. The more scared the user, the lower the score. The scale is constantly updated based on many parameters, including sell-off volume, market capitalization, actual surveys from participants, surveys from Google Trends, social media channels. …
“A value of 0 represents ‘extreme fear’, while a scale of 100 represents the ‘extreme greed’ of players and investors,” the website explains.
The fear index on May 17 fell to 8, the lowest level since March 2020. The source: Alternative
According to Fortune, Last week, the index fluctuated between 9-14 as investors sold off a large amount of Bitcoin and many other cryptocurrencies. Shares of the largest technology companies in the US were also on a downward trend, sending the market into turmoil.
Bitcoin price continues to plummet after the fall of Luna and UST. Bad news flooded in, causing many people to flee the market. Many new people have joined lose your savings a lifetime in the tumultuous May days.
Fortune Citing a Bank of America Research report showing that the fear plaguing the crypto market is comparable to the 2021 dotcom bubble burst and the 2008 global financial crisis.
Still follow New York Times, the crypto world is falling into a full-blown crisis. The fragility is reflected in the fact that digital currencies are still in the experimental and unregulated stages. Analysts say that the crisis of Terra and the risk of collapse of the stablecoin UST could cause more serious and even scarier consequences than the “crypto winter” of 2018.
“It’s like a hurricane,” said analyst Dan Dolev, in charge of crypto companies and tech finance at Mizuho Group. New York Times.
Even people with great influence in the community like Kim Kardashian or Elon Musk can not help the community to stabilize psychologically. Meanwhile, the billionaire who enthusiastically supported Luna and UST like Michael Novogratz, CEO of Galaxy Digital, has keep quiet after this digital currency has almost completely lost its value. This makes many people more insecure about the cryptocurrency market.
Khuong Nha
at Blogtuan.info – Source: vnexpress.net – Read the original article here
