Virtual currency players are going through days of extreme fear

The Cryptocurrency Market Fear and Greed Index (FGI) has reached extremely high levels, on par with the virtual currency crisis at the end of 2017.

Until now, the virtual currency world still remembers the winter day of 2017 as an unforgettable bad memory. Bitcoin then peaked at $19,000 before falling back down throughout 2018. Those were the longest cold days of any crypto investor’s life.

Now, that day is drawing near. According to the Fear and Greed Index (FGI) statistics page, the fear index dropped to 12 points at the end of last week and is at 10 points, meaning extreme fear.

Bitcoin is going through scary days as the index drops to extremely dangerous levels. (source: Coindesk and FGI)

The FGI Index is based on Bitcoin’s price range, trading volume, media and social media news, and the coin’s market capitalization. Accordingly, a lower score indicates the level of investor fear and conversely a higher score indicates an investor’s eagerness to jump into the cryptocurrency market.

So far, the FGI has recorded a few times the Bitcoin fear index has dropped below the extremely dangerous threshold.

This is the time when Bitcoin has plummeted continuously since peaking at $19,000 at the end of December. The drop caused Bitcoin to lose 65% of its value with the entire market capitalization evaporating nearly $500 billion to just under $300 billion. on 6/2/2018.

Bitcoin kept the price above $6,000 for most of 2018. By the end of November, the famous war between Bitcoin Cash and Bitcoin SV broke out that dragged the virtual currency Bitcoin down, at one point hitting a bottom of $1,300 when Investors fear the impact on the total mining power (hashrate) of the Bitcoin blockchain.

The market capitalization was then only under 150 billion USD and lasted until April 2019.

August 22, 2019 is recorded as the day of the end of fear, the highest level in history in the cryptocurrency market.

The price of Bitcoin was pulled from $3,000 to $10,000 in August 2019. But the fear of a prolonged US-China trade war and its impact caused Bitcoin to begin to experience a price drop that lasted until early next year.

The fear of the Covid-19 pandemic began to cover the world once again dragging the entire cryptocurrency market capitalization below $200 billion and Bitcoin at one point bottoming below $5,000. But from the middle of the year, the epidemic caused social distancing on a large scale, leaving people with a lot of free time to invest in the cryptocurrency market, creating an uptrend that lasted until the end of the year. 2021.

Bitcoin’s latest price drop is related to the negative news that has been pouring in over the past two weeks. First, CEO Elon Musk started by pouring cold water on the market when Tesla did not accept payment in Bitcoin.

Then came the news surrounding China’s ban on cryptocurrency trading and mining that was reported by the Western media. Followed by the US Internal Revenue Service (IRS) request to monitor trading activities and Hong Kong (China) issued a draft proposal to tighten the operation of exchanges and individual investors.

Currently, as of the morning of May 25, Bitcoin is recovering to a price of $ 39,000 with a market capitalization of more than $ 1.7 trillion.

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