The Fear and Greed Index Reaches Highest Level Since November 2021
The Fear and Greed index in the crypto market has surged to 79 points out of 100, indicating a shift in market sentiment towards extreme greed. This is the highest level seen since November 2021, when Bitcoin reached its all-time high of $69,000.
Fear and greed are powerful emotions that often drive investor behavior. When fear dominates, it leads to panic selling, while greed prompts active buying of cryptocurrencies, which can artificially inflate prices due to excess demand.
In June 2022, after the UST stablecoin collapse, the Fear and Greed index dropped to a minimum of 9 points, reflecting extreme fear among crypto investors. Following FTX’s bankruptcy filing in November 2022, the index ranged between 23 and 30 points.
By mid-October 2023, the index had recovered to a neutral 52 points. In November and December, as spot Bitcoin ETFs awaited approval, the index continued to climb in the “greed” zone. Finally, on January 9, for the first time in over two years, sentiment in the crypto market reached the “extreme greed” zone.
Meanwhile, Bitcoin’s price has surged to its highest level since November 2021. On February 12, BTC surpassed $50,000. Additionally, most of the top 10 crypto assets have experienced growth in terms of capitalization according to CoinMarketCap.
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