- The current value of the indicator is 44 (fear)
- The index fell amid a lawsuit from the SEC against Binance and personally CZ
- The market is experiencing a huge volume of liquidations
- The rate of major cryptocurrencies is falling
Today, June 6, Crypto Fear & Greed Index (an index of fear and greed) has dropped to the level of 44 units. This is the first fall of the indicator into the fear zone since the beginning of March, when the USDC lost its peg to the dollar.
The current index value looks like this:
Yesterday, June 5, the index was at the “neutral” level (53 units). Prior to this, during almost the entire May, “greed” prevailed on the market.
What dictated the “drawdown” of the indicator? First of all, the SEC lawsuit against Binance and personally its CEO CZ. In addition, in the document, the regulator designated several dozen tokens as securities.
The Fear and Greed Index is the result of an aggregated set of indicators that reflect the current market sentiment as fully as possible. It takes into account not only the movement of the price curve, but also Google trends, trading volumes, and even data from social networks.
Against the backdrop of the SEC lawsuit, the main pool of cryptocurrencies and most of the altcoins “dipped” significantly. This also had an impact on the current value of the indicator.
In addition, $280 million worth of cryptocurrency derivatives were liquidated over the past 24 hours. Long traders were hit the hardest by this. And for the most part, these were derivatives on BTC and ETH.