- The Crypto Fear and Greed Index has reached 79.
- This is the highest level since Bitcoin hit $69,000 in November 2021.
The Crypto Fear and Greed Index, a tool that measures the mood of cryptocurrency investors, has soared to its highest level since Bitcoin hit its all-time high of $69,000 in November 2021.
The index tracks various indicators that affect the behavior of crypto traders and investors, such as Google Trends, surveys, market momentum, market dominance, social media and market volatility. The index ranges from 0 to 100, with 0 representing extreme fear and 100 representing extreme greed.
According to the website, the index reached 79 on Feb. 13, the highest score since mid-November 2021, when Bitcoin was on its way to break its previous record of $69,000. A score of 79 means that the index has entered the “extreme greed” zone, which occurs when the value of the index is above 74.
The surge of greed in the crypto market coincides with the recent rally of Bitcoin, which crossed $50,000 on Feb. 12 and has gained about 13% year-to-date.
Spot Bitcoin ETFs and Market Hype
The index also reflects the impact of the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, which happened in January 2024. However, some analysts also predicted that the news could trigger some short-term selling pressure, as some investors would “sell the news” and take profits.
Cathie Wood, the CEO of ARK Invest, a firm that focuses on disruptive innovation, said in late 2023 that the spot Bitcoin ETF approval would be very short-term, and that the SEC would eventually allow institutional investors to participate in the market.
Cathie Wood said:
“That would be very short-term because what we think is going to happen here is that the SEC is going to be giving the spot Bitcoin ETF the green light for institutional investors to participate.”
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