Crypto Fear & Greed Index Lowest Since Trump Win
The Crypto Fear and Greed Index, which tracks the crypto market's emotions, has plunged to its lowest level since Trump's election last month.
Monday's index touched 70, same as before Trump's election. He won many swing states and the Senate for the GOP.
From 0 to 100, this rating measures severe fear and greed. It guides traders and investors' purchasing and selling choices by determining market fear or greed.
Post-Trump victory, the index reached 94, signaling peak market greed and likely overvaluation. Before Bitcoin reached its peak, this high occurred. Dec. 17.
After falling below 70, the index still shows a greedy market with investors overconfident but less so. Some investors' risk awareness has also increased. Greed drives unfettered growth at 90, while investors start to notice corrections and bubbles around 70.
Bitcoin is at $95,488 and down Over 8% in the previous week. Investor emotion typically impacts asset prices, increasing swiftly when greed drives gains and declining dramatically when fear drives sell-offs.
Unity Wallet COO James Toledano advised on Bitcoin's holiday behavior. He compared Bitcoin's volatility to water's persistent wetness, saying Bitcoin is constantly volatile.
He stated, “Its behavior is always mixed and there is zero discernible pattern at the end of the year and going into the next.” Sometimes the new year price increases, sometimes it lowers.
He said that decreased liquidity may increase volatility, while limited institutional engagement may stabilize prices. Yearly exceptions arise when macroeconomic news or market events cause rapid adjustments.
Following 2024's ETF approval, the Trump factor, and other macrotrends, investor attitude will determine much this year. Unless unexpected news sparks volatility, a tranquil spell is probable. But because pro-Bitcoin Trump will return to the White House on January 20, I predict price action soon,” he said.
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