Fear and Greed“ crypto index reveals „extreme greed“

31. Januar 2021 Aus Von admin

Fear and Greed“ crypto index reveals „extreme greed“ despite Bitcoin price decline

  • The crypto index of fear and greed still indicates „extreme greed“ despite recent declines in the BTC price.
  • The index has been indicating „extreme greed“ for more than two months now.
  • The positive evolution of the sector seems to be driving up prices and investor confidence.
  • The Trust Project is an international consortium of media organisations based on transparency standards.

The Crypto Fear and Greed Index continues to give a reading of „extreme greed“, despite a decline in the Bitcoin Code reviews price of Bitcoin. The leading cryptomony fell briefly below $33,700 on January 20.

The Fear and Greed Index has been suggesting „extreme greed“ in the Bitcoin market since early November. However, confidence now seems to be eroding.
The Bitcoin market remains in a state of „extreme greed“ (Extreme Greed)

Alternative.me’s Crypto Fear and Greed Index has been providing „Extreme Greed“ readings for months now.

The indicator uses volatility, social media engagement, market dominance and Google trends to gauge investor sentiment towards cryptomony.

The Crypto Fear and Greed Index is at 78: Extreme Greed

Even the significant drops in the price of Bitcoin did not dampen the enthusiasm of traders and investors. At 78/100, the 20 January indicator was still above the threshold of extreme greed.

At the time of the price reading, the BTC had already fallen by more than $1,000 from its previous day’s high of $37,600. The decline continued, with cryptomoney hitting a low of $33,700 on January 20.

Similarly, on January 11, just a few days after its high of nearly $42,000, Bitcoin dropped to less than $32,000. Despite this drop of about 25%, the index still gave an „extreme greed“ reading of 84/100 on January 12.

Not surprisingly, the market remains optimistic even in the face of such declines. Bitcoin surpassed its record price at the beginning of the month after numerous bullish developments.

Corporate investments, such as MicroStrategy’s, and growing institutional interest, such as MassMutual’s purchases of Bitcoin, highlighted the growing appeal of this asset to a different class of investors. Similarly, JPMorgan, the former opponent of Bitcoin, has taken a bullish turn by predicting that the price of the digital asset could exceed $146,000.

How long will the market remain greedy?

Although Fear and Greed’s crypto index has continued to show a level of „extreme greed“ for the past two and a half months, last week’s results have started to decline.

For the whole of December and early January, almost all readings were above 90/100. However, since the 25% correction at the beginning of the month, the results have not exceeded 90.

This indicates that the exuberance of the market is waning. The reading on January 20 (78) is the same as the reading on January 13, which is the lowest reading since November 5.

However, some large Bitcoin buyers are taking advantage of the lower prices to buy more. As BeInCrypto reported on 19 January, Grayscale bought an additional 16,244 BTCs in a single day.