These days, the cryptocurrency “Fear Index” is “in the red” and sinking further and further: From 30 last week (the scale is from 0-extreme fear to 100-extreme greed), on Friday it fell to 29 and on Saturday it plummeted to 26, a year-plus low – since Bitcoin was at $17,000.
And as bitcoin’s fall from around $72,000 to as low as $54,000 takes other digital assets with it, the majority of investors can’t help but wonder: Are we headed for a new crypto-winter in the heart of summer?
The answer may not be so clear, at least as long as, in the shadow of the collapse of the Mt. Gox Bitcoin exchange, pressure continues to mount from the US and German governments to liquidate their cryptocurrency wallets en masse.
Analysts point out that while usually extreme levels of fear in the Greed and Fear Index may indicate that it’s time for buying opportunities, this time around, the reality is nuanced with several factors to consider.
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