Bitcoin Swings Confound Crypto Fear & Greed Index

The Crypto Fear & Greed Index has been stuck at 40 for the past 24 hours, but its movement over the past month paints a more nuanced picture.

According to data from CoinMarketCap, the index's reading has barely budged, hovering around the neutral mark. However, looking back at its history reveals that it can reach extremes - in mid-August last year, it hit 68, while just recently in February, it dipped to 5.

This month, the index has been steadily moving towards the middle of the scale, possibly compressing into a narrower band despite having the full range available to it. Meanwhile, Bitcoin (BTC) has seen repeated wild price swings - from a run towards $66,500, followed by a slide back near $64,000, and another spike past $65,000.

The crypto market capitalization chart also shows multiple 5-7% swings, both up and down, within a single month. AMBCrypto had previously reported that the index has stayed in fear territory continuously since July 10th, despite leverage returning to perpetual markets in early August.