HomeArticlesCrypto Fear and Greed Index Hits 5 as Dr. Doom Warns of a Crypto Apocalypse
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Crypto Fear and Greed Index Hits 5 as Dr. Doom Warns of a Crypto Apocalypse
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.
The Crypto Fear and Greed Index plunged to the lowest level in years as Bitcoin and other altcoins plunged and liquidations soared.
Crypto Fear and Greed index has Slumped
The index, which measures the sentiment in the industry, dropped to 5, from the year-to-date high of 55. This happened as the Bitcoin price dropped to $64,000 from the year-to-date high of $126,300. Ethereum and most altcoins also continued their downtrend.
Crypto Fear and Greed Index chart | Source: CMC
The Crypto Fear and Greed Index tumbled as liquidations jumped by over 310% to over $2.7 billion. Bitcoin positions worth over $1.42 billion were wiped out. Ethereum suffered a $576 million wipeout with nearly 1 million traders languishing.
Michael Saylor’s Strategy, which has become a major Bitcoin buyer, reported a $12 billion fourth-quarter loss driven by the mark-to-market decline on its holdings. Its Bitcoin holdings are now at a 14% loss as the average cost was $76,000.
The ongoing crypto market crashhappened as investors dumped risky assets ahead of a potential attack on Iran by Donald Trump. For example, top technology stocks, including NVIDIA, Palantir, and AMD plunged, while the blue-chip SCHD ETF jumped to a record high.
Talks between the US and Iran will take place on Friday, with most analysts believing that they will not be effective. In addition to nuclear weapons, Trump has demanded that Iran reduce its ballistic missile program and stop funding regional groups like Hezbollah and Hamas. Most analysts believe that Iran will reject these demands, pushing Trump to attack.
An attack on Iran will be highly bearish for the crypto industry as it will lead to higher crude oil prices and inflation, making it hard for the Fed to cut interest rates. However, as we wrote on Thursday, the attack could be the catalystfor restarting a crypto rally.
The crypto market crash also happened as Nouriel Roubini, popularly known as Dr. Doom, warned of a crypto apocalypse. He said:
“Calling Bitcoin or any other crypto vehicle a “currency” has always been bogus. It is neither a unit of account, a scalable means of payment, nor a stable store of value.”
The future of money and payments will feature gradual evolution, not the revolution that crypto-grifters promised. Bitcoin and other cryptocurrencies’ latest plunge further underscores the highly volatile nature of this…
Most crypto bull runs start when the Fear and Greed Index is in the extreme fear zone. For example, the recent rally in January happened when the index fell to 10.
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.
Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.
