The cryptocurrency Fear and Greed Index touched the lowest level since July 2021 this week to the 'extreme fear' level. But what is fear and greed index? Here's all you need to know
The cryptocurrency Fear and Greed Index touched the lowest level since July 2021 this week to the 'extreme fear' level as the Bitcoin price plunged to $42,000 – the lowest level since late September as a hawkish Federal Reserve sapped investors' appetite for risky assets such as Bitcoin. The number two cryptocurrency, Ethereum-based crypto, Ether also declined 4 percent to $3,200-level.
What is the cryptocurrency fear and greed index?
Like in other markets, there are tools that can help in getting a broad sense of the direction of crypto prices. One such tool that is popular among crypto investors is the Fear and Greed Index.
This index is similar to the stock market fear and greed index, which Investopedia suggests was created by CNNMoney to measure the two primary emotions that influence investors' market decisions.