The Fear & Greed Index, a widely watched gauge of investor sentiment in the cryptocurrency market, has spiked to its highest level since Bitcoin’s record-breaking surge to $69,000 in November 2021.
Currently standing at 79 out of 100, the index measures various factors including market momentum, volatility, trading volume, and social media activity to assess the prevailing sentiment among crypto investors. This surge reflects a period of “extreme greed” among traders as Bitcoin’s price surpasses $49,000 and other cryptocurrencies see significant gains.
Published by data source alternative.me, the Fear & Greed Index provides valuable insights into market enthusiasm for Bitcoin and other major digital assets. The last time the index reached such levels was during Bitcoin’s historic peak in November 2021.
Since October of the previous year, the index has consistently remained above the threshold for “greed,” indicating strong bullish sentiment among investors. Notably, it briefly dipped to 50 following the approval of Bitcoin ETFs in January, which initially triggered a “sell-the-news” response in the market.
Bitcoin’s remarkable price performance over the past 12 months has been staggering, with its value more than doubling from around $21,000 a year ago to briefly surpassing $50,000 recently. While the price has retraced slightly to $49,400 at the time of reporting, the overall sentiment remains buoyant as investors continue to express optimism about the future trajectory of cryptocurrencies.
The surge in the Fear & Greed Index underscores the growing confidence and enthusiasm among investors in the crypto market, signaling a potentially bullish outlook for digital assets in the near term.
