Crypto Fear and Greed Index Reaches New Highs
13 Feb, 2024 ● Crypto News
The Crypto Fear and Greed Index, a significant gauge of market sentiment in cryptocurrency markets, has reached levels not witnessed since Bitcoin achieved its all-time highs.
As per data from Alternative.me, the Crypto Fear and Greed Index surged to a peak of 79 on February 13, marking its highest point since mid-November 2021, coinciding with Bitcoin's peak price of $69,000.
This recent upsurge in greed within the Crypto Fear and Greed Index followed closely on the heels of Bitcoin surpassing $50,000 on February 12.
Bitcoin has been experiencing a robust rally in recent months, registering a year-to-date value increase of approximately 13%, according to CoinGecko data.
Reaching 79 points for the first time in over two years signifies that the Crypto Fear and Greed Index has entered the realm of "extreme greed," a territory reached when the index value surpasses 74.
The index previously touched an extreme greed score of 76 on January 11, coinciding with the excitement surrounding the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.
The ongoing rally in Bitcoin and the recent surge in greed come about a month after the introduction of U.S.-based spot Bitcoin ETFs, possibly indicating that the short-term selling pressure associated with the ETF approval news has subsided.
In late 2023, ARK Invest CEO Cathie Wood predicted that some investors would "sell the news" of spot Bitcoin ETF approval in the short term.
The Crypto Fear and Greed Index is derived from signals affecting the behavior of traders and investors, including Google Trends, surveys, market momentum, dominance, social media activity, and market volatility.
The index comprises 25% market volatility, 25% market momentum, and 15% social media trends, among other indicators.
While the Crypto Fear and Greed Index offers insights into the state of the crypto market, individual traders or investors are advised to conduct their own research to determine which tools align best with their investment objectives.
Sources:
https://cointelegraph.com/news/crypto-fear-greed-highest-bitcoin-69k
https://cointelegraph.com/news/ai-google-search-trend-beats-bitcoin-crypto-this-year
