The recent surge of Bitcoin reached $35,000. This has increased market players’ feelings of greed. As of right now, the widely used indicator of market emotion, the Bitcoin Fear and Greed Index, is at 72.
Bitcoin’s mood swings
The indicator was somewhat lower the day before, at 66, which was still in the “Greed” category but showed a little less zeal.
Rewinding the market attitude a week ago, the index was at a “Neutral” level of 50, indicating that neither extreme optimism nor pessimism was in the lead. It’s interesting to note that one month prior, the index was somewhat lower at 47 and nearly in a comparable neutral position.
In the past, the Bitcoin Fear and Greed Index has shown to be a trustworthy gauge of the general mood of the market. Numerous sources, such as volatility, volume, social media, surveys, and other market-driven elements, are used to calculate its measures.
The indicator historically tends towards “Greed,” warning investors about potential overheating during exuberant market stages. On the other hand, during market downturns, the index typically shows “Fear,” which contrarian investors frequently interpret as a possible purchasing opportunity.
Full-on bullish mode
Amidst increased expectations of U.S. regulatory approval for stock market funds based on the cryptocurrency, Bitcoin rebounded from prior losses and reached a 17-month high.
Due to heightened investor optimism that the Securities and Exchange Commission (SEC) will approve an exchange-traded fund (ETF) in the next months, as well as encouraging signals from prominent organisations like as BlackRock, the value of the cryptocurrency jumped by more than 10% to $35,000.
Following a short period of stabilisation, Bitcoin was able to rise again over $34,000.
There may still be opportunity for greed to rise in the present cycle, according to historical evidence. According to historical records, the index peaked in February 2021 at 93. It peaked at 84 in October 2021. These historical highs demonstrate that the market has historically supported greater positive feeling than it does now, and more bullish sentiment may yet rise.
