Crypto Fear & Greed Index Reaches New High Amid Bitcoin’s Price Surge
With the price of bitcoin surpassing $49,000 and other cryptocurrencies also experiencing significant gains, market sentiment has reached a state of “extreme greed,” according to the well-known Fear & Greed Index. Developed by data source alternative.me, this index measures the level of enthusiasm among traders towards bitcoin and other digital assets. The last time the index reached a score of 79 out of 100 was during bitcoin’s record high of around $69,000 in November 2021. Alternative.me warns that excessive greed among investors often precedes a market correction. While traders typically favor buying during times of extreme fear, it remains to be seen if this will hold true. Notably, the index has consistently remained above 70 (the threshold for “greed”) since October of the previous year. However, there was a temporary drop to 50 following the approval of bitcoin ETFs in January, which initially resulted in a “sell-the-news” reaction. Over the past year, bitcoin’s price has more than doubled, rising from $21,000 to briefly surpass $50,000 yesterday before settling around $49,400 at present.