2024-02-19 04:04:02
The “Fear and Greed” index on the crypto market rose to 79 out of 100 points, which means the sentiment of participants has shifted to the “extreme greed” sector. The current value is considered extremely high; the last time it was observed was in January against the backdrop of Bitcoin’s rise to $47 thousand, Day.Az reports with reference to RBC.
Fear and greed are emotions that often influence investor behavior. The first is accompanied by massive sales and panic in the market, and the second is accompanied by active buying of cryptocurrencies. The latter can lead to excess demand and artificially inflated coin prices.
In June 2022, after the collapse of the UST stablecoin from Terraform Labs, the indicator dropped to a minimum value of 9 points, showing the extreme fear of crypto investors. At the time of filing for bankruptcy of FTX in November 2022, the index was at the level of 23-30 points.
By mid-October 2023, it had recovered to a neutral 52 points, and in November and December (pending approval of spot Bitcoin ETFs) it continued to grow in the “greed” zone. On January 9, for the first time in just over two years, sentiment in the crypto market reached the “extreme greed” zone.
Meanwhile, the Bitcoin rate has updated its 2024 high, which was reached exactly a month ago. On the evening of February 12, the price of the first cryptocurrency briefly exceeded $50 thousand.