The Bitcoin Fear & Greed Index (FGI) has changed from “fear” to “neutral” for the first time since April 2022. The index’s primary objective is to aid digital token traders in making decisions about their next steps by assessing current market sentiment. A long-term bull market triggers a strong reaction in the Fear and Greed Index. Please be aware that we do not strongly react to recent global news events or brief market fluctuations involving cryptocurrencies.
The Fear and Greed Index is a method that some investors use to gauge the market. It is based on the idea that excessive fear can cause a stock to sell for a lot less than its intrinsic value. Because they promote market-timing strategies rather than buy-and-hold strategies, some skeptics discredit indexes as reliable investment vehicles. As it surged above $21,000 over the weekend, Bitcoin reached a score of 52 on the index.
This value, which represents the lower end of the “Fear” scale, has slightly decreased to 45 as of this writing. The index began the year in a zone of extreme fear, indicating that bearish sentiment dominated the market in the beginning of January.
However, as Bitcoin rose to $17,200 from its November and December lows, FGI shed extreme fear.
Bitcoin fell precipitously following FTX’s demise. Nevertheless, it appears to have returned to levels prior to the FTX collapse over the past week. The most valuable cryptocurrency by market capitalization remained rangebound for approximately 63 days before reaching above $20,000 and overcoming resistance.
In June 2022, the Market Sentiment Tracker reaches a record low of 9. He has been in the extreme anxiety category between 20 and 30 ever since. In addition, Cointelegraph reported that he went through the longest period of extreme fear in history in the middle of 2022. Although other global indicators have not displayed similar bullish trends, FGI may have moved away from “fear.” For instance, the amount of traffic generated by Google searches for the term “bitcoin” is still at its lowest level since December 2020.
Bitcoin interest has definitely decreased during bear markets outside of these anomalous nations, and the recent rally has not significantly increased global bitcoin searches.
A review of popular Bitcoin-related videos, news, and blogs with sentiment analysis performed on January 15 revealed a peak of positive sentiment. However, over the past 30 days, there has not been an apparent rise in either positive or negative opinions.