Home NewsBitcoin Crypto Fear and Greed Index Hits 18-Month Low: Bitcoin Market Sentiment Analysis

Crypto Fear and Greed Index Hits 18-Month Low: Bitcoin Market Sentiment Analysis

by Tatjana
3 minutes read

What is the Bitcoin Crypto Fear and Greed Index?

The Crypto Fear and Greed Index is a measure of market sentiment for Bitcoin (BTC) and the broader crypto market. Recently, the index has dropped to 30, which is the lowest score it has reached in 18 months. This drop indicates that the market is currently in the “fear” zone.

Current Market Sentiment

Bitcoin (BTC) sentiment has hit its lowest point in nearly 18 months, with the Crypto Fear and Greed Index scoring just 30. This marks the first time the index has been this low since January last year. The index is used to gauge the emotions and sentiments of the market, with a lower score indicating more fear and a higher score indicating more greed.

Recent Bitcoin Price Trends

On June 24, Bitcoin’s price fell below $60,000, causing the index to drop more than 20 points into the fear zone. Earlier this year, in May, Bitcoin’s price had fallen to lows of $56,500, which also caused the index to dip from neutral to fear. However, a bounce in Bitcoin’s price saw the index rise to 74, indicating greed, before dropping back down to 30.

Impact of Market Events

Several events have contributed to the recent decline in the Crypto Fear and Greed Index. One major factor is the news about Mt. Gox repayments. Mt. Gox, a former Bitcoin exchange, will start repaying customers who lost their funds in a 2014 hack. Over $8.5 billion worth of BTC is with the exchange’s trustee. Analysts at K33 Research warned that these repayments could impact Bitcoin prices.

Another factor is the selling of Bitcoin by the German government. Recently, the government sent 1,700 BTC to exchanges like Coinbase and Kraken. This selling activity has further contributed to the market’s fear. On-chain data from Lookonchain showed another 400 BTC deposited into centralized exchanges (CEXs), adding to the negative sentiment.

Details on German Government Bitcoin Seizure

The German police have seized 50,000 Bitcoin (BTC) worth over $2.1 billion. This seizure is part of an investigation into a website piracy operation that began in 2013. The suspects used proceeds from their piracy operation to purchase Bitcoin, which they voluntarily transferred to police wallets. The investigation into money laundering related to this case is still ongoing. Authorities have not yet decided what to do with the seized Bitcoins.

US Government Bitcoin Holdings

In addition to the German government’s actions, the US government has also made headlines with its Bitcoin holdings. Recently, the US government announced plans to sell over $130 million in BTC seized from individuals connected to the Silk Road, a dark net marketplace. Blockchain analytics firm Arkham reported that US authorities currently hold more than 216,000 BTC, worth over $9.3 billion, seized from various individuals over the past few years.Conclusion

The Crypto Fear and Greed Index’s drop to 30 highlights the current fearful sentiment in the Bitcoin and broader crypto market. Factors like the Mt. Gox repayments and the German government’s selling of seized Bitcoin have contributed to this decline. As the market reacts to these events, it will be important to monitor the index and Bitcoin’s price trends to gauge future market sentiment.

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