Bitcoin Market Sentiment Reaches Greed Levels
The Crypto Fear & Greed Index indicates that Bitcoin (BTC) market sentiment has returned to levels not seen since its price reached $69,000 in mid-November 2021. Currently at 72 out of 100, the index is in the “greed” ranking. This marks a six-point increase from October 24 and a 16-point jump from its “neutral” rank on October 18.
BlackRock’s Spot Bitcoin ETF Excitement
The strengthening market sentiment follows the excitement surrounding BlackRock’s spot Bitcoin exchange-traded fund (ETF) potentially gaining approval from the United States Securities and Exchange Commission. On October 24, Bitcoin experienced its largest single-day rally in over a year, with a 14% daily gain and briefly surpassing the $35,000 mark.
Crypto Fear & Greed Index Calculation
The Crypto Fear & Greed Index calculates market sentiment by considering data from six key performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%). The index provides a daily score reflecting the sentiment.
Highest and Lowest Scores
The index last reached a score of 72 on November 14, 2021, just days after BTC achieved its all-time high of $69,044. On the other hand, it recorded its lowest-ever score of 7 on June 16, 2022, following the collapse of Do Kwon’s Terra ecosystem. This collapse had cascading effects on prices and led to casualties like hedge fund Three Arrows Capital and crypto lender Voyager Digital.
Predictions for Bitcoin Price Increase
Gaining approval for spot ETFs has generated optimism, with Galaxy Digital, a crypto investment firm, predicting that Bitcoin’s price could surge by over 74% in the first year following successful approval.
Hot Take: Bitcoin Market Sentiment Reflects Growing Greed
The Crypto Fear & Greed Index reveals that market sentiment for Bitcoin has reached levels of greed not seen since its record-breaking price in November 2021. This surge in sentiment comes as anticipation grows around BlackRock’s potential approval for a spot Bitcoin ETF. The index calculates sentiment using various indicators, and it currently sits at 72 out of 100. This renewed optimism follows Bitcoin’s significant rally on October 24. While the index hit its lowest point after the collapse of the Terra ecosystem, the recent excitement for ETFs has sparked predictions of a substantial price increase for Bitcoin.
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