As the hype around the BTC spot ETF grows in the market, the Crypto Fear and Greed Index has entered the “extreme greed” zone.
Fear Index on the Rise
The Crypto Fear and Greed Index shows that Bitcoin’s mood in the market is currently at 76 out of 100, the highest since Bitcoin’s price peaked in mid-November 2021 at around $69,000. Back on December 5th, the index briefly hit “extreme greed” with a score of 75. Just before that, on December 4th, Bitcoin crossed the $40,000 mark and then jumped to $44,000 the next day.
Earlier, on November 11, 2021, the index also reached “extreme greed” with a score of 77, right after Bitcoin had reached its highest price ever. The Fear and Greed Index collects data from six important things in the market: volatility, market momentum, volume, social media, surveys, Bitcoin’s dominance, and trends.
Historical Data of the Index
Back on June 15th, when BlackRock applied for a Bitcoin ETF, the market mood score was at 41, showing “Fear.” But just six days later, when other companies also wanted Bitcoin ETFs, the score shot up to 59, hitting the “Greed” zone.
The highest score ever recorded for market sentiment was 95 on June 26, 2019. However, the lowest score was seven on June 16, 2022, right after Do Kwon’s Terra ecosystem faced a collapse.
To sum it up, the arrival of spot ETF applications shook up the cryptocurrency market, making people super greedy about Bitcoin, as seen by the score of 76 on the Fear and Greed Index. When BlackRock started the Bitcoin ETF talk on June 15th, and other companies followed suit, the market sentiment rose. The index’s highest score was on June 26, 2019, while its lowest was on June 16, 2022. During this time, the Bitcoin price fell to $46,850.
What is the Crypto Fear and Greed Index?
The Crypto Fear and Greed Index is a popular sentiment indicator used in the cryptocurrency market to measure investors’ emotions and sentiments towards the market. It shows how investors are feeling about the market on a scale from 0 to 100.
When the index is low, around 0, it means people are very scared about the market, probably because of a potential bear run. This might suggest that prices are very low and could go up soon. But when the index is high, nearing 100, it shows that people are excited and ‘greedy’. This might mean prices are really high and could drop soon.
Basically, it helps traders and investors understand if people are overly scared or overly excited about cryptocurrencies. But it’s important to use this along with other ways of studying the market because feelings alone don’t always predict what prices will do.
