The Crypto Market Reaches Highest Fear and Greed Index Score Since 2021
In the past 24 hours, approximately $150 million worth of short positions have been liquidated. This comes as the crypto market experiences its highest fear and greed index score since 2021. The expectation of approval for spot Bitcoin exchange-traded funds (ETFs) applications from the Securities and Exchange Commission (SEC) has fueled a rally in Bitcoin and the broader crypto market.
Bitcoin Greed Revisits 2021 Levels
The Bitcoin Fear and Greed Index currently stands at a score of 76, indicating extreme greed. This level has not been seen since 2021 when Bitcoin reached its all-time high. The index takes into account factors such as volatility, market momentum, social media sentiment, dominance, and trends.
Bitcoin Hits $47,000 and Triggers Liquidations
Bitcoin recently surged to $47,000, pushing it into the extreme greed zone. This rally of over 9% resulted in nearly $150 million worth of short liquidations in the past 24 hours. Additionally, long positions worth $56 million were also liquidated.
Extreme Volatility Expected Due to ETF Decision
The upcoming decision on spot Bitcoin ETFs could lead to extreme volatility in the market. Previous instances have shown that significant liquidations can occur in a short period of time. Bitfinex has warned about potential pullbacks and increased risk to leveraged longs.
Hot Take: Brace Yourself for Potential Volatility
As the crypto market anticipates the SEC’s decision on Bitcoin ETFs, it is crucial to prepare for potential volatility. The recent surge in Bitcoin and the highest fear and greed index score since 2021 indicate heightened market excitement. However, with increased excitement comes increased risk, and traders should be cautious and aware of the possibility of pullbacks and liquidations.
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