FameEX Hot Topics | Crypto Market Sentiment Peaks, Matching BTC's $69K All-Time High Period
The Crypto Fear & Greed Index, a gauge of market sentiment, has surged to levels not witnessed since the crypto market's peak rally in November 2021, coinciding with Bitcoin's record-high price of $69,000. Currently at a score of 72, it falls into the "greed" category, representing a six-point rise from October 24 and a substantial 16-point increase from its "neutral" score of 50 on October 18.
This resurgence in market sentiment correlates with growing anticipation that the United States Securities and Exchange Commission (SEC) may soon approve BlackRock's spot Bitcoin exchange-traded fund (ETF). This optimism aligns with Bitcoin's remarkable performance on October 24, when it recorded its most substantial single-day gain in over a year, surging by 14% and briefly surpassing the $35,000 mark.
The Crypto Fear & Greed Index derives its score by evaluating data from six key market performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin's dominance (10%), and trends (10%). The last time the index reached a score of 72 was on November 14, 2021, just four days after Bitcoin achieved its all-time high of $69,044 on November 10, 2021, according to CoinGecko data. On the contrary, the index recorded its lowest-ever score of 7 on June 16, 2022, in the aftermath of the collapse of the Terra ecosystem initiated by Do Kwon.
The repercussions of the Terra ecosystem collapse triggered a chain reaction of price-related effects, leading to casualties like hedge fund Three Arrows Capital and crypto lender Voyager Digital.
Amid the enthusiasm for spot ETFs, Galaxy Digital, a crypto investment firm, has made a bullish prediction. They foresee that following a successful approval, the price of Bitcoin could surge by more than 74% in the initial year. This prediction reflects the potential transformative impact of Bitcoin ETFs on the cryptocurrency market and investor sentiment.
Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.