Crypto Greed and Fear Index (CGFI) is just cooling off after hitting the three (3) month high point on the 14th of August, 2019, when the index was down to a score of 11.
The Crypto Greed and Fear Index has over time turned out to be an effective way of speculating the market swings based on the market sentiment.
The index has hit a three month low with the score, however, it has now recovered back to the thirty-one (31) score, that marks Fear in the market.
The Crypto greed and fear index chart reveals that the cryptocurrency sphere was practically very happy on the 26th of June when the crypto index score hit over ninety-five (95).
However, the chart shows a constant decline since the 12th of July, 2019 and it seems that the crypto-sentiments are likely to remain in the forty to seventy range for a few weeks.
How does Crypto Greed and Fear Index work?
The Crypto Greed and Fear Index measures the market sentiment at a given time on a scale of one to hundred (1-100). Where the lower the number the closer it is to extreme fear and the 0 marks the extreme.
Higher the number and higher the level of greed in the cryptocurrency sphere and lower the number higher the fear in the cryptocurrency market.
Current market situation
Although some experts have rejected the crypto index in a unique way. Where experts like Alex Kruger are not discussing the flaws in the index, although he calls out the Index on Twitter with the remark that he is not afraid of the prevailing extreme fear sentiment in the market.
Are you afraid?
I am not.
(Fear & Greed index currently at the Dec/2018 lows)
— Alex Krüger (@krugermacro) August 14, 2019
While, the crypto greed and fear index uses five different types of data sources to complete the analysis.
These include; Volatility comprise twenty percent (25%), Market Momentum/Volume comprise twenty percent (25%), Social Media comprise fifteen percent (15%), Surveys comprise fifteen percent (15%), Dominance comprise ten percent (10%), and Trends comprise ten percent (10%) of the data used for analysis.