Fluctuations in market sentiment underscore Elon Musk’s deep influence.
The index of crypto fear and greed signals for “extreme fear”For the first time in more than a year, dropping to 20 on May 16th.
This happened after the CEO of Tesla Elon Musk caused the market to decline earlier this week by announcing that the e-car maker would suspend payments with Bitcoin.
After a slight recovery, Bitcoin is still struggling to settle above $ 50,000 after sinking to $ 46,716 earlier today on the Bitstamp exchange.
Significantly, the index rose to an annual high of 95 in February, shortly after Tesla announced its $ 1.5 billion purchase of Bitcoin, underscoring Musk’s influence in the market.
The index, which has become a popular tool for measuring mood Bitcoin, includes factors such as instability, market momentum, social media posts and Bitcoin dominance.
On March 14, 2020, it reached a record low of 8 after the crypto market saw one of its worst crashes to date during the pandemic.
The index was also at almost zero levels in December 2018.
