Bitcoin's Fear and Greed Index Reaches Highest Level in 4 Years

Bitcoin's Fear and Greed Index has reached its highest level in 4.5 years, with a score of 94, indicating extreme greed in the cryptocurrency market. This score is reminiscent of previous peaks around 4 years ago when Bitcoin experienced a significant boom but also faced strong subsequent declines. At this time, the index has continuously surpassed the 80 level since November 12, indicating excitement in the market.

However, experts also warn that extreme greed often carries the risk of price corrections. Other indicators such as new money flow into the market and the MVRV ratio also suggest that Bitcoin may peak in the near future, but there is also a possibility of a deep correction following strong price increases. Investors should exercise caution and consider potential signs of correction in the current context.