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"Extreme Fear" Takes Over Crypto Market Following Elon Musk's Bitcoin Betrayal

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Sun, 05/16/2021 - 08:20
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Alex Dovbnya
The fluctuations of market sentiment underscore Elon Musk’s profound influence
"Extreme Fear" Takes Over Crypto Market Following Elon Musk's Bitcoin Betrayal
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Crypto Fear & Greed Index is flashing “extreme fear” for the first time in over a year after plunging to a 2021 low of 20 on May 16.  

Crypto market
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This comes after Tesla CEO Elon Musk caused a market crash earlier this week by announcing that the e-car manufacturer would suspend Bitcoin payments because of climate change concerns.

Following a mild recovery, Bitcoin is still struggling to gain footing above $50,000 after dipping to $46,484 earlier today on the Bitstamp exchange.  

Notably, the index climbed to a yearly high of 95 back in February shortly after Tesla announced its $1.5 billion Bitcoin purchase, which underscores Musk’s influence on the market.

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The extremity of fear

The index—which has become a popular tool for measuring Bitcoin sentiment—incorporates such factors as volatility, market momentum, social media posts, and Bitcoin’s dominance.        

On March 14, 2020, it tanked to a record low of 8 after the crypto market saw one of its most violent crashes to date during the onset of the pandemic.

The index was also sitting at near-zero levels back in December 2018.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.