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Crypto Fear and Greed Index Improves a Bit After 60% Selloff

If trader sentiment is a guide, cryptocurrencies could return or at least stop selling after one of the worst quarters in their history.

If trader sentiment is a guide, cryptocurrencies could return or at least stop selling after one of the worst quarters in their history.

According to Arken Research, the crypto fear and greed index rose to 19, marking the highest point in two months. The measure is pushing towards the “fear” area after sitting comfortably at the “extreme fear” level, the firm’s analysts said in a note.

“The sentiment in the crypto market has been depressing for several months, but we are seeing little improvement this week,” they wrote.

The price of Bitcoin briefly broke down on Tuesday before falling above $ 20,000. The world’s largest digital token fell nearly 60% in the second quarter as Hawkish hit a string of central bank and high-profile crypto blowups.

In traditional markets, the Fear and Greed Index measures investor sentiment based on factors including the speed and demand of volatility. The crypto version, created by Alternative Dotmy, seeks to establish whether traders are too bullish (represented by “greed”) or bearish (“fear”) and considers social media trends and a few more things like Google search terms. The index ranges from 0 (“extreme fear”) to 100 (“extreme greed”).

Moreover, the seven-day volatility of Bitcoin has reached its lowest level since the beginning of April while the 30-day volatility has remained high, Arken Research noted.

Still, analysts say they won’t be surprised to see something “a big quarter in the crypto market and an unpleasant July after the start of summer”.

For Sylvia Zablanski, CEO of Defense ETF, the sentiment for the market is not necessarily good, the Federal Reserve is determined to raise rates at the top of the growing list of crypto firms, lenders and hedge funds.

“Most investors are feeling quite uncertain about investing in both crypto and markets at the moment,” Jablonsky said by phone. “It will probably take a while before we start seeing some recovery.”




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