Binance Hack Sends Crypto Fear and Greed Index Crashing to 30

The Binance attack added pressure to an already weakening market, and dragged the Fear and Greed Index further into fear territory. The Fear and Greed Index dropped to 30 points following the October 29 attack on Binance, as market sentiment remained firmly in fear territory. The security breach resulted in losses of $6.3 billion. The exchange said it had covered and replenished approximately 95% of the assets stolen. However, prominent analyst Axel Adler Jr. said that the market sentiment was already weakening before the incident. Fear Territory The index fell from 68 points on October 22 to 51 by October 29, before the attack coincided with another sharp decline. Adler’s findings revealed that the 30-day average currently stands at 56 points, which was indicative of how much weaker sentiment has become compared with its average level over the past month. The current reading is also below the historical median of 44, although it remains above the lower quartile of 26. According to the analysis, a sustained rise in the index, supported by a recovery in price, is needed to confirm an improvement in market sentiment. Meanwhile, Doctor Profit considers the hack a black swan event. He ...