While the cryptocurrency market continues to rise, it is observed that risk appetite has increased in the Fear and Greed Index, a key metric. According to the data, the index, which was rated “fear” in August, has recently risen to “greed.” The index, which is rated on a 100-point scale, has exceeded 60 points.
Bitcoin, which is trading above $65,000 and is considered one of the key resistance points, may be preparing for a potential rally. The Fear and Greed Index, which dropped to 17 points on August 6 and hit a yearly low, started to give FOMO signals as the price of Bitcoin ($BTC) surpassed $65,000.
The index, which hit 64 points on September 28, has created anxiety in the cryptocurrency market. The index, which represents sentiment and thinking in numerical form, is based on market dominance, social media interactions, investor behavior, and market volatility.
The last time the index crossed 64 points was on July 30, when BTC was at $66,000.
In a September 27 report, 10x Research director Markus Thielen said that BTC’s rise above $65,000 could create a fear of missing out (FOMO) sentiment in the market. Thielen said he expects the cryptocurrency to rally in the final quarter of the year.
Capriole founder and CEO Charles Edwards argues that traders will abandon gold and other stocks and move into cryptocurrencies. Edward said;
“The flow of capital from gold and stocks to Bitcoin will continue unabated for the next 6 months.”
Asset management giant VanEck has called BTC, which has gained 124 percent over the past 12 months, the best-performing asset of the year.
