Crypto Fear and Greed Index Skyrockets Alongside Bitcoin’s Surge Above $50K
A key gauge of investor sentiment, the Crypto Fear & Greed Index, currently signals strong bullish sentiment and increased risk appetite among investors.
The Crypto Fear & Greed Index surged to 79, marking its highest level since Nov. 2021 when Bitcoin soared to an all-time high above $69,000.
The index ranges from 0 to 100 and analyzes market sentiment for Bitcoin and other top cryptocurrencies. It considers metrics like market momentum, volatility, volume, and social media activity.
JUST IN: Crypto Fear & Greed Index hits "Extreme Greed" with a value of 79, the highest since November 2021. pic.twitter.com/IOKuMj4WAA
— CoinGecko (@coingecko) February 13, 2024
Readings between 50 and 74 mean “greed,” while above 75 is “extreme greed.” The higher the number, the more confident investors are about Bitcoin. As of Tuesday, the index showed extreme greed, hinting at a possible market correction.
Values below 50 typically indicate “fear” or a cautious sentiment among investors.
The jump comes as Bitcoin surged past $50,000 on Tuesday, propelled by a surge in investments from spot Bitcoin exchange-traded funds (ETFs). The cryptocurrency market grew by over 3.5% in just 24 hours, reaching $1.87t.
The market has broken through its January peak and is currently at its highest level since April 2022, according to FxPro senior market analyst Alex Kuptsikevich.
“Bitcoin has surged back to levels reminiscent of late 2022, yet the dynamics of this rise warrant attention,” he added. “Its behavior echoes patterns observed in 2020 and late 2021. Notably, the cryptocurrency’s Fear and Greed Index mirrors previous highs, signaling a familiar sentiment.”
“Although we last saw such index heights in late 2021, it marked the end of a prolonged uptrend,
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