The Bitcoin Fear & Greed Index, a measure of Bitcoin and overall cryptocurrency market sentiment, fell to 50 on Friday from 69 on Thursday, the lowest score since October 14 last year, according to data from Coinglass.
The Fear and Greed Index floated between "fear" and "neutral" territory in early October, when Bitcoin was trading between about $60,000 and $63,000. After October 15, as Bitcoin continued to rise and exceeded the $100,000 mark, the Fear and Greed Index hovered in the "extreme greed" and "greedy" areas for nearly three months before falling back to "neutral" today. area.
Source: Coinglass
The cooling of market sentiment occurred when Bitcoin fell below $92,000 yesterday, following reports that the U.S. Department of Justice had obtained approval to sell $6.5 billion worth of Bitcoin seized from Silk Road, although the agency has not sold any Bitcoin to date. Some analysts have also attributed the recent market downturn to expectations that the U.S. Federal Reserve might tighten monetary policy in 2025, which would affect Bitcoin and the overall cryptocurrency market.
The values of the Cryptocurrency Fear and Greed Index are calculated based on market volatility (25%), trading volume (25%), social media sentiment (15%), Bitcoin dominance index (10%), and trends (10%). The index reached 94 points (out of a maximum of 100 points) on November 22 of last year, when the market reacted positively to speculation about Trump winning the presidential election and the possibility of the U.S. establishing a Bitcoin strategic reserve by 2025.
Data source
Source
