Crypto players' fear index soars

 The concerns in the cryptocurrency market during this period are likened to the dotcom bubble period and the 2008 global financial crisis.

This morning, the Bitcoin price remained below $30,000. Although the market is no longer wobbly like last week, the psychology of players is still going down.

The Fear & Greed Index compiled by Alternative shows that users' fear of Bitcoin and other cryptocurrencies is falling to a record level, since March 2020. On May 17, this index fell to the 8th scale, and the weekly average was 12.

Fear & Greed is scored on a scale from 0 to 100. The more scared the user, the lower the score. The scale is constantly updated based on many parameters, including sell-off volume, market capitalization, actual surveys from participants, surveys from Google Trends, social media channels ...

"A value of 0 represents 'extreme fear', while a scale of 100 represents the 'extreme greed' of players and investors," the website explains.

The fear index on May 17 dropped to 8, the lowest since March 2020. Source: Alternative
The fear index on May 17 dropped to 8, the lowest since March 2020. Source: Alternative

According to Fortune, last week, the index fluctuated between 9-14 as investors sold off a large amount of Bitcoin and many other cryptocurrencies. Shares of the largest technology companies in the United States were also on the decline, sending the market into turmoil.

Bitcoin price continued to plummet after the collapse of Luna and UST. Bad news flooded in, causing many people to flee the market. Many new entrants lost their life savings during the tumultuous May days.

Fortune cites a Bank of America Research report showing that the fear that is pervading the crypto market is comparable to the 2021 dotcom bubble burst and the 2008 global financial crisis.

According to the New York Times, the crypto world is in a full-blown crisis. The fragility is reflected in the fact that digital currencies are still in the experimental and unregulated stages. Analysts say that the crisis of Terra and the risk of collapse of the stablecoin UST could cause more serious and even scarier consequences than the "crypto winter" of 2018.

"It's like a hurricane," analyst Dan Dolev, in charge of crypto companies and tech finance at Mizuho Group, told the New York Times.

Even big influencers in the community like Kim Kardashian or Elon Musk cannot help stabilize the community. Meanwhile, billionaires who once enthusiastically supported Luna and UST like Michael Novogratz, CEO of Galaxy Digital, have been silent after this digital currency almost completely lost its value. This makes many people more insecure about the cryptocurrency market.

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