Bitcoin Starts the Week Green as 'Fear & Greed Index' Turns Favorable

Michael LaVere
  • Bitcoin's price jumped 5 percent on Aug. 19
  • Fear and greed index is leaning towards investors undervaluing the asset. 

Bitcoin and other top cryptocurrencies started the week on a positive note, with BTC gaining more than 5% on Monday and being up 0.5% so far today.

Bitcoin Price August 2019

After a week of a steady downtrend in value for bitcoin, the price of BTC saw a favorable increase on Aug. 19. The price of the leading cryptocurrency by market capitalization jumped over 5% in the span of hours, in part due to a shift in market sentiment. 

Bitcoin has been on a lazy decline over the last month and a half, after closing on a 2019 relative high of $13,100 in late June. 

bitcoin price 3 months cryptocompareBitcoin's price over the last month | Source CryptoCompare

July brought about negative price sentiment towards bitcoin and crytoassets with the regulatory firestorm aimed towards Facebook’s digital currency libra. The price of BTC suffered in the fallout, as regulatory concerns bled over into market uncertainty. 

More recently, reports have tied the $3 billion, 70,000 BTC Chinese ponzi scheme Plus Token to the falling price for bitcoin, as the scam artists allegedly continue to dump crypto in regular batches. 

However, the market took a turn for BTC on Aug. 19, with the cryptocurrency's 'Fear & Greed Index' showing crypto sentiment pointing solidly towards fear. As the indicator's website notes "extreme fear" is a sign investors are too worried, and oculd bei nterpreted as a buying singal.

crypto fear and greed indexFear & Greed Index for cryptocurrency

The index is a multifactorial gauge of  market sentiment and has been used to judge broad trends in investor emotion. While bitcoin’s price may have wavered over the last month, multiple analysts are beginning to label the currency as an alternative asset to gold. With an economic recession and global trade concerns looming on the horizon, interest in BTC could continue to grow in the second half of 2019.