The CFGI rating is still in “fear” territory today, after the Crypto Fear and Greed Index (CFGI) fell to a significant low and noted “extreme fear” in the crypto market at the end of May and throughout most of June, but it has it has been improved. On June 19, the CFGI had a score of 6, meaning “extremely fearful,” and 61 days or two months later, the CFGI score now reads 33, or “fearful.”
CFGI Ranking Scores Show Crypto Winter Continues to Keep Investor Sentiment in ‘Fear’ Zone
While the crypto-economy has climbed back above $1 trillion, prices have started to fall again after the last rally. After the Terra blockchain imploded, the cryptoeconomy lost enormous value and extreme fear shook the community throughout June. The Crypto Fear and Greed Index (CFGI) hosted on Alternative.me was severely down at the time, and on May 31, 2022, Bitcoin.com News reported a CFGI ranking score of 16 out of 100 or “extremely fearful.”
Every day, the CFGI Rank Score analyzes “sentiments and sentiments from different sources and compresses them into a simple number.” Alternative.me says a value of 0 means “extremely fearful” and a value of 100 means “extremely greedy”. The website adds:
crypto market [behavior] very emotional. When the market goes up, people tend to get greedy, leading to FOMO (fear of missing out).Also, people often sell their coins with irrational responses [to] Seeing the red numbers – there are two simple assumptions: 1) Extreme fear may indicate that investors are too worried. This could be a buying opportunity. 2) When investors become too greedy, it means the market should adjust.
In mid-June, the CFGI ranking score was even lower, dropping to 6 out of 100 on June 19, 2022. Historical crypto price data shows that BTC traded at $20,553 per unit on the day and the previous day in June 18, with BTC hitting a 2022 low of $17,593 per unit. Today, the CFGI Ranking score has improved, and the sentiment score has moved from the “extremely fearful” position to the “fearful” area, with a score of 33 out of 100.
After the market crashed in May and June, BTC managed to recover some losses and on August 14, 2022, the price broke above $25,212 per unit. On the same day, the CFGI ranking score jumped to 47, indicating a shift in sentiment. However, over the past 48 hours, the value of BTC has dropped significantly, from $23,593 per unit to today’s low of $21,268. The CFGI ranking failed to rise above the “fear” zone and appeared to be moving back into the “extremely fearful” score range.
What do you think of the recent CFGI ranking scores and the crypto economy taking another dive in dollar value? Let us know what you think about this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons, CFGI via Alternative.me
Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.