Crypto Fear and Greed Index hits lowest point in 100 days
Bitcoin’s drop below the $40,000 mark for the second time in a week has caused the Fear and Greed Index to hit its lowest point in 100 days. This decline in the index indicates a decrease in interest from potential cryptocurrency investors, as changes to Bitcoin and the cooling of the market due to the arrival of spot Bitcoin exchange traded funds (ETFs) take effect.
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. This places it in the neutral zone, with fear prevailing. This is the lowest value since October 16, when the index was at 47.
Since November 2023, the fear and greed index has consistently been in the “greed” zone, reflecting investors’ eagerness to purchase cryptocurrencies. This enthusiasm was fueled by the anticipation of the imminent launch of a Bitcoin ETF.
However, with the introduction of spot Bitcoin ETF trading in the United States and Bitcoin’s decline below the $40,000 level, the index has now fallen. This could suggest that the frenzy surrounding Bitcoin ETFs has subsided.
Grayscale CEO Michael Sonnenshein shares this sentiment, stating that most of the 11 spot Bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) are likely to fail. According to Sonnenshein, only “two or three exchange-traded funds will probably achieve some critical mass.”
In related news, a SEC Commissioner has stated that Ethereum ETF approvals will not follow the same path as Bitcoin.
