'Extreme fear' prevails in crypto market, discouraging investment

The Cryptocurrency Fear and Greed Index is an index that tracks market sentiment towards digital assets.

Various calculation indicators are used to form the index: bitcoin dominance (10%), market volatility (25%), trends (10%), and trading volume (25%).

The mark of 25 points indicates an extreme level of fear, that is, most investors are frightened by the current situation in the crypto market. This, according to experts, is a good time to buy.

In March 2024, the fear and greed index reached a high of 90 points, demonstrating the "extreme greed" of market participants. At that time, the price of bitcoin was climbing above $70,000. Since then, the leading crypto-asset has been in a downtrend, which intensified after the sell-offs of the bankrupt Mt. Gox exchange and the German government.

Bitcoin has been unable to cross the $60,000 mark for a long time now. Recently, the main cryptocurrency rose above $59,000 after the United States authorities published data on inflation in the country. However, BTC then fell back below the $58,000 level. Bitcoin is currently trading around $57,000.