As Bitcoin's price has hit new records, market sentiment has increased.
Bitcoin had a break yesterday, but the uptrend has returned today as the coin has reached a new all-time high (ATH) above $93,000.
Bitcoin has gained almost 24% weekly since this rise. Ethereum (ETH), the largest asset in the industry, has produced similar earnings as BTC.
Many cryptocurrencies have outperformed these two heavyweights, with Dogecoin (DOGE) achieving 120% positive returns.
When the market is optimistic, investor sentiment improves. As the Fear & Greed Index reveals, this happened again.
Bitcoin Fear & Greed Index Is 84 Alternative devised the “Fear & Greed Index” to measure investor sentiment in Bitcoin and other cryptocurrency marketplaces.
This indicator measures trader mindset on a 0-100 scale. Above 53 indicates investor greed, while below 47 indicates market anxiety. Net neutrality lies between these cutoffs.
These three basic emotions are joined by excessive greed and terror. The former is above 75 and the latter beneath 25.
The measure appears to be 84 | Source: Alternative The index is 84, as seen above. This implies severe investor greed.
Bitcoin and other currencies in the industry have often defied expectations. The audience gains confidence when a countermove is likely.
When the Fear & Greed Index reaches an extreme, BTC may reverse. The March top had this effect also.
That peak had the indicator at 88, which is close to the current figure. Thus, sentiment may indicate that Bitcoin is overheating.
The surge may still have space to run, since preceding bull markets have seen the cryptocurrency stay in this extreme zone until the cyclical peak.
