Crypto Fear And Greed Index Surges To 16-Month High As Bitcoin Breaches $28,000
The Crypto Fear and Greed Index, a measure of market sentiment towards cryptocurrencies, hit its all-time high this year, reaching a score not seen since November 2021, when Bitcoin hit an all-time high.
The index, which ranges from 0 to 100 and is based on factors such as volatility and trading volume, reflects the growing optimism and confidence among investors as BTC breaks above $28,000.
The increase in the index suggests that traders are feeling more optimistic about the future of cryptocurrency markets, despite recent regulatory concerns and market volatility.
Crypto Fear and Greed Index: Bullish Sentiment After the Banking Crisis
Bitcoin has experienced a significant rise in value, with its price rising by nearly 30% to reach $28,500 in just one week. At the time of writing, BTC is trading at $28,122, up 16.3% over the past seven days, shows data from crypto market tracker Coingecko.
Source: Coingecko
This increase in performance also had an impact on the Bitcoin Fear and Greed Index, which looks at a range of factors including price volatility, social media activity and surveys to gauge investor sentiment towards BTC.
At the moment, the index is at 68, indicating a state of “greed”. This level was last seen in mid-November 2021, shortly after Bitcoin reached its highest ever record, surpassing $69,000.
When the Crypto Fear and Greed Index is high, experts can warn that the market is overbought and due for a correction. They can also warn that investor sentiment has become overly optimistic, which could lead to a market bubble and a subsequent price drop.
Source: Alternative.me
Furthermore, experts may advise investors to exercise caution and not get carried away by the hype of a market recovery, as prices can be subject to significant fluctuations.
Experts caution, however, that while a high Cryptofear and Greed Index may indicate positive sentiment, it should not be the only factor in making investment decisions. It is important for investors to conduct thorough research and consider a variety of factors before making any investment decision.
Bitcoin as the best performing asset
Recent data from Goldman Sachs show that Bitcoin outperformed traditional investment assets and sectors in terms of absolute returns and risk-adjusted performance.
Specifically, the leading cryptocurrency gained 51% in year-to-date absolute returns (YTD), outperforming gold and the S&P 500, which gained just 4% each over the same period.
BTC total market cap now at $531 billion on the daily chart at TradingView.com
This increase in the price of Bitcoin is attributed to the growing likelihood that the US Federal Reserve will change its monetary policy. In fact, since March 10th, when regulators shut down Silicon Valley Bank, Bitcoin has surged by 35%.
While market analysts have warned of a possible correction, the cryptocurrency has rebounded more strongly than Wall Street stocks, making it an attractive option for investors.
-Featured Image by Frank Sonnenberg Online