Bitcoin Fear and Greed Index is increasing to neutral for the first time in 9 months.
Bitcoin Fear and Greed Index is increasing to neutral for the first time in 9 months.
The Bitcoin Fear and Greed Index-a key figure that has determined the general mood of the community compared to the primary cryptocurrency-rose "neutral" for the first time in almost nine months.
The increase is due to the positive start of BTC in 2023.
finally out of the 'fear' zone
The Bitcoin Fear and Greed Index pursues several segments, including price volatility, comments on social media, surveys and others to display the current mood towards the leading digital asset. It delivers results between 0 ("Extreme Fear") to 100 ("Extreme Greed").
The Index Spitz at 52 yesterday (January 15), which means for the first time since April 5, 2022 on "neutral" territory. In the past nine months it was either in the zones "fear" or "extreme fear", triggered by the extension of the bear market and the negative events that surrounded the cryptocurrency industry (the Terra crash, the bankruptcy of 3AC, the collapse of FTX and many more).
The main reason for the recent increase could be Bitcoin's price increase. The asset has increased its USD value by around 25 % since the beginning of the year and is currently trading at around $ 20,800. It beat almost $ 21,500 today (January 16)-a 10-week high.
Despite the promising results, the Bitcoin Fear and Greed Index has now returned to the "fear" state and fell to 45.
The entire digital asset sector has experienced moments of resuscitation in the past few days, with the global crypto market capitalization (on Coingecko) touching the $ 1 billion brand.
Bull Run on the horizon?
The last time that Bitcoin started the year so well, was in early 2021, which prompted some analysts, such as James Check from Glassnode, to imagine the end of the ongoing Baisse.
He found that the two leading cryptocurrencies after market capitalization-Bitcoin and Ether-have learned little volatility in the past few weeks. Historically, such periods lead to "explosive market movements":
"It is really remarkable, and there are very few cases in history in which Bitcoin and other digital assets really fall asleep on a volatility frame at this level."
The price of Bitcoin was relatively flat between December 2018 and March 2019 and moved around $ 3,500. In April, however, a rally that continued until July (when BTC was almost $ 12,000) began. .