The Crypto Fear & Greed Index had a reading of 40 at press time, barely any movement on the scale in the last 24 hours. However, a more interesting pattern shows up if one looks at its movement over the course of a month.
Moving at a steady pace ?
This finding is interesting because the index’s own history makes it obvious that it is capable of extremes.
According to data from CoinMarketCap, we were as greedy as 68 in mid-August last year, and in extreme fear at 5 as recently as February. This month’s run of 28 to neutral 40 means the index may be compressing (deliberately or not) into a narrow band… despite having the full range available to it.
Price hasn’t been calm at all
Meanwhile, Bitcoin [BTC] has seen repeated full cycles this month. This has included a run towards 66.5K, a slide back near 64K, another spike past 65K, and then another pullback.
The crypto market capitalisation [TOTAL] chart also appeared similar on the face of it.
A climb to 2.25T, a drop to 2.14T, a bounce to 2.2T, a fall back to 2.14T, and a recovery to 2.2T by early August. Multiple 5-7% swings, both up and down, inside a single month.
AMBCrypto had previously reported that the index has stayed in fear territory continuously since 10th July. This, despite leverage coming back into the perpetual markets in early August.
What should you be looking at?
It is unnatural for the market to not sway while the prices do. This is exactly why the current fear and greed index run of the month spells indifference.
Either traders have grown numb to volatility inside this range, or they genuinely can’t decide which way to lean even as prices go wild in both directions. Either way, a flat sentiment reading during an active market removes one of the more useful contrarian signals that traders tend to rely on.
Final Summary
- Crypto Fear & Greed Index has been very steady, despite wild swings across the market.
- Flat sentiment reading despite active price cycles may be a sign of indifference.
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