The score of the index ranges from 0-100 seeks to provide a measurement of the daily sentiment of the market by collecting and measuring the data from social media, volatility, surveys, volume and Bitcoin dominance. The 0 score indicates “extreme fear” while 100 represents “extreme greed”.
Current Bitcoin investors position
However, for the past few months, the index has been ranged between eleven (11) and forty (40). This score shows that it is a little bit optimistic than that of the December 2018 to January 2019, when the crypto market capitalization was below one hundred and forty billion dollars ($140) and the volume of trading was around twenty billion dollars( $20) a day, respectively sixty and seventy percent less than today’s metric.
The present market sentiment seems to be growing gradually more towards the fear scale since last June, following the dramatic reverse soon after BTC started its decline from thirteen thousand and nine hundred dollars on 26th June, when the index hit a high of ninety-five, representing a bullish sentiment.
The price action of Bitcoin has a striking impact on the intraday sentiment along with the strong buying and selling walls coinciding with a swift shift towards fear or greed. The spontaneous slide of Bitcoin from ten thousand nine hundred and fifty dollars ($10,950) to nine thousand and nine hundred dollars ($9,900).For instance 20 and 21 August took the index to a low level of five, the poorest sentiment recorded in its nineteen-month history.