Sentiment on the crypto market has exhausted its “greed” and fallen into the neutral zone
The mood of cryptocurrency market participants has moved into the “neutral” zone after almost three months of being in the “greed” phase. Five days after the Bitcoin ETF was approved, the fear and greed index dropped from 76 points to 52 out of a possible 100.
The indicator has remained in greed territory since October 24, 2023, and reached a two-year high of 76 on January 9 ahead of the US approval of spot Bitcoin exchange-traded funds. The indicator value remained in the zone of “extreme greed” on January 11, the first day of trading in the new instrument, after which it began to fall.
Marks close to 50 points reflect a neutral state on the crypto market. Market participants do not experience fear, which leads to the sale of assets and a fall in asset prices, but “greed” no longer pushes them to buy cryptocurrency.
The Bitcoin rate, meanwhile, consolidated at $42 thousand after reaching a maximum of $48.9 thousand on January 11, the first day of the launch of trading in shares of spot Bitcoin ETFs.
