The Crypto Fear and Greed Index- which is a tool that is used to measure the broader market sentiment towards every cryptocurrency- has already gone down to a level of fear, something that was not witnessed since the 11th of March, when the USD coin of Circle briefly ended up losing its dollar peg.
This stumble in the sentiment across the market came on the 5th of June- which came in the wake of the United States Securities and Exchange Commission- where they filed a lawsuit against Binance- which is the US arm of operations, as well as its CEO- Changpeng Zhao. The SEC ended up pressing around 13 charges against the exchange and its affiliates for being incapable to register as a securities exchange, whilst operating illegally in the United States.
Crypto Fear and Greed Index Has Something For Everyone
The crypto index functions by aggregating a whole mixture of indicators that could gauge the market sentiment. It combines several metrics, involving momentum, price volatility, and trading volume, with data received from social media, and Google trends in order to create an overall picture of investor emotions towards the wider market. A lot of the negative sentiment owes to the immediate plunge in the value of major cryptocurrencies that have followed the latest move by SEC against Binance. Blue-chip crypto assets such as Ether and Bitcoin are already down by 4.1% and 3.1% respectively.
The larger altcoins, nevertheless, have taken a massive beating. Cardano is currently down 6.4% in the last 24 hours, while Solana has gone down by 7.4%. Traders with most of the open positions on crypto derivatives markets have also suffered major consequences, with around $280 million worth of liquidating taking place ever since the lawsuit was announced.