The Bitcoin fear and greed index is one of the most frequently used indicators among the crypto community to measure public sentiment towards Bitcoin. This week, after so many weeks, the indications began to change, from "greed" to "extreme fear". This is the first time this month, this indication shows a level of greed after a few weeks ago the BTC price started to give hope by rebounding above $ 50,000.
This index of fear and greed is based on the community’s general view of BTC and other crypto assets. More precisely, those factors include surveys, social media comments, price volatility, and total holdings.
This change is due to market players beginning to respond to the sentiment of reports related to the crisis in Kazakhstan. It was reported that residents in the country staged riots following the government's decision to raise oil prices by twice the previous price.
As a result, the government has acted to shut down internet access, causing all activities in the network to be disrupted and a decline of more than 2%.
At the same time, bitcoin mining activity had to be delayed leading to a sharp decline in the hashrate of over 13% from a record high of 194 EH/s to a low of 168 EH/s.
However, recent developments have changed public sentiment. As a result, the index has fallen from level 50 (greed) to level 10 (extreme fear) in a few weeks.
Apart from other factors, the index of fear and greed are among those related to the price of bitcoin. In addition, the market also reacted to the report of the minutes of the FOMC meeting which showed that interest rates would be raised earlier than expected.
The current price of Bitcoin is trading at the price level of $ 42,882.48 per unit.
