Developed by the Alternative.me portal, the cryptocurrency Fear and Greed Index dropped again to the levels it touched amid the Terra (LUNA) collapse.
Bears pushed Crypto Fear & Greed index to multi-month lows
Today, on June 14, 2022, the Crypto Fear and Greed Index—an integral indicator of investor sentiment—plummeted to 8/100. The last time it was this low was August 2019.
Bitcoin Fear and Greed Index is 8. Extreme Fear— Bitcoin Fear and Greed Index (@BitcoinFear) June 14, 2022
Current price: $21,972 pic.twitter.com/5bH1ggfpAv
The current position should be interpreted as "Extreme Fear." In May 2022, it also pummeted to 8/100. In August 2019, when Bitcoin (BTC) was struggling to stay above the $10,000 level, this indicator bottomed at 5/100; it was the absolute all-time low.
Surprisingly, even amid the unmatched carnage of Crypto Black Friday that sent the Bitcoin (BTC) price to $3,150, investors showed more optimism about its performance.
This recession is also a record-breaking one: for the first time ever, the Crypto Fear and Greed Index stays in the bearish "Extreme Fear" zone for over six weeks in a row.
Is the bottom in?
This painful dropdown should be attributed to an array of dramatic events for the cryptocurrency segment. In mid-May, 2022, UST stablecoin and Terra (LUNA) protocol collapsed due to an imbalance in the Anchor Protocol.
As the Bitcoin (BTC) dropdown has accelerated, Celsius Network hybrid blockchain services provider is getting close to collapse, accompanied by a 50% drop of the CEL price.
However, many seasoned experts, including economist Raoul Pal, are sure that we should brace ourselves for more pain coming in the next few weeks.