With the cryptocurrency market consolidating the recent gains that have seen Bitcoin (BTC) trade above the psychological threshold of $30,000 for several days before marginally returning below it, the crypto Fear & Greed index has soared to a 17-month high.
As it happens, the Fear & Greed index in the cryptocurrency sector is currently standing at 69, which is well into the ‘greed’ zone and the highest level since November 2021, when the crypto industry was in the middle of one of the largest bull runs since its inception, as per the alternative.me data retrieved by Finbold on April 17.
What this means
Indeed, on November 9, 2021, the crypto Fear & Greed index stood at 84 in favor of ‘greed,’ according to the crypto market sentiment analysis chart that has monitored these numbers since February 1, 2018. On these charts and gauges, a value of 100 represents ‘extreme greed,’ while a value of 0 refers to ‘extreme fear.’
To produce these values, the crypto Fear & Greed index relies on indicators such as crypto trading volume, market momentum, price volatility, and social media trends. It stands on the premise in the financial markets that excessive fear can lead to assets trading below intrinsic value, while high greed can lead to traders bidding them above what they should be worth.
With this in mind, the ‘FUD’ (‘Fear, Uncertainty, Doubt’) sentiment feeds into high values in the ‘fear’ zone, while the ‘greed’ reading suggests increased investor confidence in the future performance of digital assets, which is demonstrated at this time.
As the positive sentiment keeps stacking, Bobby Lee, the founder, and CEO of the crypto wallet firm Ballet, believes that the market is currently in the process of leaving the crypto winter behind, seeing the signs of potential ‘crypto spring’ unfolding.
Bitcoin price analysis
Meanwhile, the crypto industry’s recovery charge is led by its representative asset – Bitcoin – which at press time was trading at the price of $29,491, down 2.6% on the day but still holding on to the gains of 4.02% in the last week and 7.37% over the previous month.
Interestingly, some projections for the future Bitcoin price are extremely optimistic, including the Bitcoin Rainbow chart, which, judging by its patterns, expects at least $115,000 by the end of 2024, as Finbold reported earlier.
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