Several cryptocurrencies including Bitcoin and Ethereum have declined massively in price since last week. The loss in value that was recorded on May 19th might stand to be the biggest since the past year.
The Fear & Greed Index of the most valuable crypto asset, BTC, has plummeted to its lowest rating since the last market crash of March 2020.
The March 2020 crash was triggered by the impact of the coronavirus pandemic. The crash happened on 12th and 13th of March 2020 which saw the Fear & Greed Index fall to 14 and 10 respectively which was an indication of the “extreme fear” in the market. The decline continued till it hit 8 on 17th and 26th of March as well.
The Current Index Rate and the Crypto Market Crash
At present, the Greed and Fear Index presiding over the cryptocurrency market stands at about 11, at the time of this report due to panic pressure especially on the 19th of May.
Although it can be argued that the market crash of 2020 has a bigger rating in percentage as BTC went from $8k to $3,800, however, the current market crash in 2021 saw the entire market cap shedding tens of billions; Bitcoin alone losing over $70 billion yesterday.
Bitcoin has faced a rough May with several factors triggering speculations over the cryptocurrency.
Institutions and even governments have sent the public panicking over BTC and altcoins as China announced that its Central Bank is banning all financial offices in the country from running any transactions in cryptocurrency.
The joint body that announced the ban had pegged that reason on the volatility of cryptocurrencies and its possibilities of being manipulated in value, while warning citizens to desist from participating in the innovation as it isn’t backed by the law.
In another instance, sparks flew as well after Tesla through a tweet made by its CEO Elon Musk announced that they were suspending the use of cryptocurrencies as a payment alternative. The announcement caused BTC to fall from a $50,000 support level to $45,000 before China triggered another panic.