Sentiment in the crypto market has exhausted "greed" and fallen into the neutral zone
Sentiment in the cryptocurrency market has exhausted "greed" and fallen into the neutral zone
The Fear and Greed Index has collapsed 24 points in the five days since the first spot bitcoin-ETFs were launched in the US
The mood of cryptocurrency market participants has moved into the "neutral" zone after nearly three months of being in the "greed" phase. Five days after the approval of the bitcoin-ETF, the Fear and Greed Index dropped from 76 points to 52 out of a possible 100.
The indicator had remained in "greed" territory since Oct. 24, 2023, and hit a two-year high of 76 points on Jan. 9 ahead of the U.S. approval of spot bitcoin exchange-traded funds. The value of the indicator stayed in the "extreme greed" zone on January 11, the first day of trading in the new instrument, and then began to fall.
Fear and Greed Index. Source: alternative.me
Close to 50 points reflect the neutral state of the crypto market. Market participants do not feel fear, which leads to asset sell-offs and falling asset prices, but also "greed" no longer pushes them to buy cryptocurrency.
The bitcoin exchange rate, meanwhile, has consolidated at $42 thousand after reaching a high of $48.9 thousand on January 11, the first day of the launch of trading in shares of spot bitcoin-ETFs. As of 12:40 Moscow time on January 15, the price of BTC is hovering around the $42.6 mark