In the past 24 hours, the cryptocurrency market experienced a modest increase of 2.16% against the U.S. dollar, with bitcoin’s value lingering slightly above the $69,000 threshold. The Crypto Fear and Greed Index (CFGI) indicates that the market’s mood remains in an “extreme greed” phase.
Market of ‘Extreme Greed’ Persists Amid Unprecedented June Bitcoin Perpetual Futures Sell-Off
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Market Sentiment Swings Between ‘Greed’ and ‘Extreme Greed’ Despite Bitcoin’s Dips
Despite last week’s dip in bitcoin prices, market sentiment as indicated by the CFGI hosted on alternative.me remains at a score of 78, denoting “extreme greed.” On Friday, the score reached 79, marking a state of “extreme greed” according to the fear and greed index. Over the past month, the CFGI score has fluctuated between “greed” and “extreme greed,” with the figure standing at 81, or “extreme greed,” 30 days ago.
The CFGI assesses market mood using various indicators such as volatility, market momentum, and volume, as well as social media trends. Typically, if the CFGI observes high buying activity in a buoyant market, it interprets the behavior as “overly greedy” or excessively optimistic. Despite the CFGI indicating levels of “greed,” bitcoin’s market performance has dipped by 1.4% against the U.S. dollar this week.
Currently, BTC is valued at 5.3% below its peak of $73,794 per coin, reached on March 14, 2024, just 23 days ago. In the derivatives market, there’s an equilibrium with 52.23% of positions being long and 47.77% short against the leading crypto asset. In the last 24 hours, about $28.02 million in bitcoin short positions were liquidated. QCP Capital reported on April 5 that there has been a significant uptick in the sale of perpetual futures contracts set to expire in June for both BTC and ETH.
“This has compressed the front end and flattened the whole forward curve to 15-17% across the board,” QCP added.
What do you think about the current crypto fear and greed index levels? Share your thoughts and opinions about this subject in the comments section below.
