Recently, the Bitcoin Greed Index has significantly retreated, dropping from last month's high of 95 to the current 70. This notable change is not just a numerical fluctuation; it is a positive adjustment driven by the internal mechanisms of the market, laying a suspenseful foundation for future trends.
Looking back at the development of Bitcoin, its price fluctuations resemble a roller coaster, sometimes soaring to the skies and other times plunging to the depths. The Greed Index once surged to astonishing heights during market euphoria, vividly reflecting the frenzy of investors seeking profits, as if everyone could see the endless treasure behind Bitcoin, flooding into the market and pushing prices upwards.
However, extreme situations must reverse; a high Greed Index also indicates market overheating and irrational prosperity. Now that the index has fallen to 70, it is like the market has undergone a calm reflection after a carnival; some rational investors are beginning to reassess the value and risks of Bitcoin, and the market is gradually returning to a relatively stable and more rational state.
