Crypto investors exhibit 'extreme greed' as bitcoin crosses $18,000

Cryptocurrency • November 18, 2020, 4:30AM EST
The Block

The current sentiment of the cryptocurrency market is showing "extreme greed," according to Crypto Fear & Greed Index by tracker Alternative.me.

The index has hit a high of 91 points, its largest since June 26, 2019, as bitcoin continues to soar. About a month ago, the index was exhibiting "fear," at around 50 points.

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The extreme greed comes as bitcoin is touching new heights. Its price has now crossed the $18,000 mark, and market capitalization has breached its previous all-time high record, according to TradingView. The surge to $18,000 occurred fast, within a few hours, as bitcoin was trading at around $17,000 levels a day ago.

When crypto investors get too greedy, that means the market is due for a correction, according to Alternative.me. The firm calculates the value of the fear and greed index daily on a scale of 0 to 100. Near-zero levels mean "extreme fear," while around 100 means "extreme greed."

Alternative.me takes into consideration five factors for calculating the index: Volatility (weight: 25%), Market Momentum/Volume (25%), Social Media (15%), Surveys (15%), Dominance (10%) and Trends (10%).

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.