Crypto Fear & Greed Index Returns to Greed
30 Sep, 2024 ● Crypto News
The Crypto Fear & Greed Index has reached its highest level since July, remaining above 60 for two consecutive days.
On September 28, the index recorded a score of 64, placing it in the "Greed" zone as Bitcoin briefly touched the $66,000 mark, according to CoinMarketCap.
The Crypto Fear & Greed Index is designed to quantify the current "emotions and sentiments" around Bitcoin and the overall crypto market. It ranges from 0 to 100, with 100 representing extreme greed and 0 extreme fear.
In contrast, much of August saw the index in the "Fear" range, hitting its lowest point of 2024 on August 6 with a score of 17, when Bitcoin was priced around $53,000.
The last time the index exceeded 64 was on July 30, when Bitcoin was also around $66,000.
The index is calculated using various factors that influence trader and investor behavior, including Google Trends, market momentum, social media, market volatility, and dominance.
According to the index's data sources, the score is based on 25% market volatility, 25% market momentum, and 15% social media trends, among other indicators.
Markus Thielen, head of research at 10x Research, noted in a report on September 27 that a fourth-quarter crypto rally could be on the horizon.
Bitcoin's rise above the $65,000 level could trigger FOMO (fear of missing out) in the market.
CoinMarketCap data shows Bitcoin has gained around 11.18% over the past month, marking the highest growth since March.
Additionally, Charles Edwards, founder and CEO of investment firm Capriole, forecasted significant capital inflows into Bitcoin from gold and stocks.
He stated in a September 27 X post that "the capital flows back into Bitcoin from gold and stocks over the next six months will be relentless."
Asset management giant VanEck ranked Bitcoin as the top-performing asset of 2024, noting that its spot prices have surged 124% over the past year, outpacing traditional assets.
However, VanEck also pointed out that recent market downturns have left some investors feeling cautious.
Sources:
https://cointelegraph.com/news/crypto-fear-greed-index-back-into-greed-territory
