Bitcoin was pushed down below the price range of US$ 40,000 on 8th January 2021 which had a great impact on the Crypto Fear & Greed Index (CFGI). CFGI shows that ‘extreme fear’ is rising and currently the index is moving ahead with the lowest score of 10 only.
Billions of dollars were lost in the mist when the global digital currency market saw value reduction in the past week. The reduction caused a 10% reduction in the value of Bitcoin as well and Bitcoin was even pushed back below the US$ 40,000 price range. Similarly, Bitcoin saw its price settling at US$ 40,517 on 8th January 2022, which was the lowest since the end of September 2021.
Since the market conditions for Bitcoin are uneven, therefore, many investors have glued their eyes to the Crypto Fear & Greed Index (CFGI). This index shows whether the market conditions are promising or that the fear is rising. Currently, CFGI is showing that it has a 10 score only which indicates that ‘extreme fear’ is there and rising as well. It is by far the lowest score ever and the last time when the lowest score was seen was in July 2021. However, even at that time as well, the score wasn’t 10 and in fact, it was more than 20 some 171 days ago. In the past month, the score is getting weaker and weaker. For instance, 30 days ago, it was 30 and last week it became 21 and now it is 10 i.e. the lowest ever.
CFGI’s low score of 10 suggests that investors may have become cautioned about further investments. They would be waiting for the CFGI’s score to get better before they can make any move. Usually, it is Bitcoin that greatly impacts CFGI. Since the beginning of the year, Bitcoin has gained only 6.4% value gains which are relatively on the lower side. However, it is lagging behind 39% approximately against its ATH value of 10th November 2021.
This year’s Bitcoin progress is sluggish and in fact, the asset is struggling against a price zone of US$ 30,000. Although it is trading hands @ above US$ 40,000 on several occasions, the price has been pushed back into the US$ 30K zone.