Crypto Fear and Greed Index returns to neutral territory with a sharp decline
After experiencing a surge in the previous week, the cryptocurrency fear and greed index has now returned to a neutral position. As reported by Alternative.me, on January 15th, the index dropped to levels not seen since October 2023. This decline occurred shortly after the approval of the first spot Bitcoin (BTC) ETFs in the United States.
According to the index, Bitcoin’s market sentiment score currently stands at 52 out of 100, the lowest it has been since October 19th of last year when BTC was trading at an average daily price of around $31,000. This information comes from Alternative.me as the source.
Interestingly, just a few days ago, the fear and greed index reached an “extreme greed” reading of 76 as the market eagerly awaited the approval of spot Bitcoin ETFs.
The index provides a numerical representation of the emotions and sentiments of participants in the crypto market. It gathers and analyzes data from six key market indicators: volatility (25%), market momentum and volume (25%), social media activity (15%), survey data (15%), BTC dominance (10%), and trends (10%).
On the evening of January 10th, the U.S. Securities and Exchange Commission (SEC) made an announcement approving 11 applications for spot exchange-traded funds based on the first cryptocurrency. Some of the eligible issuers include Bitwise, Grayscale, Hashdex, BlackRock, Valkyrie, BZX, Invesco, VanEck, WisdomTree, Fidelity, and Franklin Templeton.
Prior to the official approval, a fake SEC message was circulated, claiming that the commission had already given its nod to the ETF. The regulator later clarified that their account had been compromised, leading to significant fluctuations in the price of Bitcoin.
In related news, an analyst predicts that Vanguard will ease its stance against ETFs. Stay updated by following us on Google News.
