Bitcoin’s Fear and Greed Index, a metric that determines overall community sentiment about the top cryptocurrency, shot up to a “Neutral” status for the first time in nearly nine months.
The rise comes as a result of BTC’s positive start in 2023.
Finally out of the ‘fear’ zone
The Bitcoin Fear and Greed Index tracks multiple segments, including price volatility, social media feedback, surveys, and others, to show momentary investor sentiment toward the top digital asset. It provides results between 0 (“Extreme fear”) to 100 (“Extreme greed”).
The index pointed at 52 yesterday (January 15), which means you were in “Neutral” territory for the first time since April 5, 2022. You were in the “Fear” or “Extreme Fear” zones for the past nine months, triggered by the prolonged bear market and adverse events surrounding the cryptocurrency industry (Terra crash, 3AC bankruptcy, FTX collapse and many more).
The main reason for the recent increase could be the increase in the price of bitcoin. The asset has added approximately 25% to its USD value since the start of the year, currently trading at around $20,800. That paste almost $21,500 today (Jan 16), a 10-week high.
Despite the promising results, however, Bitcoin’s Fear and Greed Index has now returned to “fear” status, falling to 45.
The entire digital asset sector has seen moments of revival in recent days, with the global crypto market capitalization touching the $1 trillion mark over the weekend (on CoinGecko).
Bull Run on the horizon?
The last time Bitcoin started the year well was in early 2021, leading some analysts like Glassnode’s James Check to envision the end of the prolonged bear market.
He noted that the top two cryptocurrencies by market capitalization, bitcoin and ether, have seen little volatility in recent weeks. Historically, such periods lead to “explosive market moves”:
“It really is quite remarkable, and there are very few cases in history where Bitcoin and any digital asset actually went to sleep at this level in a volatile framework.”
The Bitcoin price was relatively stable between December 2018 and March 2019, hovering around $3,500. However, in April a rally began that lasted until July (when BTC was worth almost $12,000).
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This post Bitcoin Fear and Greed Index Climbs to ‘Neutral’ for First Time in 9 Months
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