Crypto Fear and Greed Index Reflects Bullish Market Sentiments
The price of bitcoin (BTC) has experienced a surge this week, largely due to positive investor sentiment surrounding the potential approval of America’s first spot bitcoin exchange-traded fund (ETF) by regulators. At the time of writing, BTC is trading above $34,000, compared to around $28,000 just last Thursday.
This shift in sentiment is evident in the Crypto Fear and Greed Index (CFGI), which reached over 70 points out of 100 this week and currently stands at 71 (indicating greed) as of October 26. The CFGI is a measure of the balance between fear and greed in the crypto market, with zero representing extreme fear and 100 representing extreme greed.
Another indicator, Coinmarketcap’s Fear and Greed Index, currently sits slightly higher at 72 points. This index remained neutral for most of October before entering the green zone this week, coinciding with significant changes in market sentiments.
Market Volatility and Regulatory Impact
Throughout 2021, market moods have been heavily influenced by negative news surrounding regulatory crackdowns on the crypto industry. Major platform collapses, such as that of cryptocurrency exchange FTX last year, have contributed to investor fear.
However, the potential approval of a spot bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) has provided some balance. Research conducted by Galaxy Digital suggests that the launch of a spot-based bitcoin ETF could increase BTC’s price by 74% in its first year.
Hot Take: Bitcoin Bulls Return as ETF Approval Hopes Rise
With bitcoin trading higher amid rising anticipation of a spot bitcoin exchange-traded fund (ETF) approval in the U.S., investor moods have clearly shifted. The index measuring the balance between fear and greed emotions of participants in the crypto market entered the green zone of the scale this week.
The recent surge in bitcoin’s price and the increase in sentiment reflected by the Crypto Fear and Greed Index indicate a renewed bullish outlook for the cryptocurrency market. As regulatory hurdles potentially ease with the approval of a spot bitcoin ETF, investors are becoming more optimistic about bitcoin’s future. This positive shift in sentiment is likely to drive further price growth and attract more participants to the crypto market.
By
By
By
By
By
By