Crypto Fear and Greed Index Strikes Highest Point since Bitcoin's Peak
Summary:
The Crypto Fear and Greed Index, a tool that gauges market sentiment in the cryptocurrency world, reached 79 on February 13, its highest point since Bitcoin's peak in mid-November 2021. This surge followed Bitcoin's climb past the $50,000 mark and suggests a shift into the 'extreme greed' zone. Despite this indicator, individual investors are advised to undertake their own research to align with their investment goals.
The Crypto Fear and Greed Index, which monitors the mood in cryptocurrency markets, has reached levels last recorded when Bitcoin (BTC) hit its peak value. Alternative.me data shows that the index soared to 79 on February 13, the first time it has reached this level since Bitcoin's highest price, $69,000, was recorded in mid-November 2021. This increase came soon after Bitcoin crossed the $50,000 mark on February 12, as part of a steady rise that has seen its value grow by around 13% so far this year, as per CoinGecko data.
The first time the index reached the 79 point level in over two years suggests a move into the 'extreme greed' zone, characterized by a score exceeding 74. On January 11, during the excitement over the launch of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the US, the Crypto Fear and Greed Index previously reached the extreme greed category with a score of 76.
The current Bitcoin surge and increased greed follows the US spot Bitcoin ETF launch by a month, indicating an end to short-term selling related to the ETF approval. Earlier, in late 2023, Cathie Wood, CEO of ARK Invest, anticipated a short-term sell-off following the approval of the spot Bitcoin ETF.
In addition to market volatility trends, the Crypto Fear and Greed Index is influenced by factors such as Google search trends, surveys, market momentum, and social media. The index consists of 25% each of market volatility and momentum, 15% of social media trends, and contributions from other factors.
However, while the Crypto Fear and Greed Index provides a valuable snapshot of the crypto market's state, individual traders and investors should continue to research the tools that best align with their investment objectives.
Published At
2/13/2024 12:46:00 PM
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