Crypto Fear and Greed Index hits its lowest point in 100 days.
The Fear and Greed Index has reached its lowest point in 100 days as Bitcoin dipped below the $40,000 mark for the second time in a week.
With the recent changes to Bitcoin and the cooling down of the market following the highly anticipated launch of spot Bitcoin exchange-traded funds (ETFs), the Fear and Greed Index has entered the neutral zone, indicating a decrease in interest from potential cryptocurrency investors.
The Fear and Greed Index, which ranges from 0 to 100 with 0 representing extreme fear and 100 representing extreme greed, currently stands at 48 points, placing it in the neutral zone with a leaning towards fear. This is the lowest value since October 16th, when the Index stood at 47.
Since the start of November 2023, the fear and greed index had been in the “greed” zone, reflecting investors’ strong desire to purchase cryptocurrencies. This interest was fueled by the anticipation of the imminent launch of a Bitcoin ETF.
However, with the recent launch of spot Bitcoin ETF trading in the United States and Bitcoin’s drop below the $40,000 level, the Index has fallen. This may indicate that the frenzy surrounding Bitcoin ETFs has subsided.
Grayscale CEO Michael Sonnenshein also holds the belief that most of the 11 spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) are likely to fail. He predicts that only “two or three exchange-traded funds will probably achieve some critical mass.”
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