Bitcoin ETF Anticipation Propels Crypto Fear and Greed Index into 'Extreme Greed' Zone
Summary:
The Crypto Fear and Greed Index is registering "extreme greed" as the industry waits for the approval of a Bitcoin ETF. With a market sentiment score of 76 out of 100, it's a peak not seen since Bitcoin reached near-record prices in November 2021. The market sentiment score factors in volatility, market momentum and volume, social media activity, surveys, Bitcoin's dominance, and trend analysis. Bitcoin's price had recently surged to $47,175 as per CoinGecko data.
As we await the approval of a spot Bitcoin exchange-traded fund (ETF), the Crypto Fear and Greed Index is now suggesting "extreme greed" within the industry. Currently, the market sentiment score for Bitcoin is 76 out of 100, a high not seen since mid-November 2021 when Bitcoin neared its peak price of $69,000. Notably, a fleeting shift into the "extreme greed" section was registered on Dec. 5 when the score hit 75, coinciding with Bitcoin's rise past the $40,000 milestone and subsequent surge to $44,000 the next day.
The score last demonstrated "extreme greed" on Nov. 11, 2021, with a reading of 77, which took place shortly prior to Bitcoin hitting its all-time high price. This index aggregates information from half a dozen market indicators – volatility, momentum and volume of the market, social media activity, surveys, Bitcoin's dominance, and prevalent trends – to calculate a daily market sentiment score.
Coinciding with BlackRock's move to file for a spot Bitcoin ETF on June 15, the sentiment score was lodged in the "Fear" zone at 41, but it jumped to 59, indicating "Greed" within six days as multiple other asset management firms followed BlackRock's path. The highest sentiment score to date is 95, registered on June 26, 2019, while the lowest ever, recorded on June 16, 2022, followed the crash of Do Kwon's Terra ecosystem and was just seven.
As of the latest update, Bitcoin's price had climbed to $47,175 on the evening of Jan. 8, before moderating to $46,850, as per CoinGecko data.
Published At
1/9/2024 8:38:40 AM
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