Fear & Greed Index Moves to Greed as Bitcoin Hits Two-Month High

The Crypto Fear & Greed Index registered a 'greed' score of 61 in an update on Thursday, the first time it has reached that level since the $19 billion liquidation event in October that sank investor sentiment. The index had been in weeks of "fear" and "extreme fear" after crypto investor sentiment plunged on Oct.

11 following the $19 billion liquidation, and hit low double digits several times in November and December. It climbed to 48 the day before the latest reading, placing it in the "neutral" zone. The index, from Alternative.me, calculates ratings using multiple indicators including price fluctuations, trading activity, momentum, Google search trends and social media sentiment.

Overall sentiment has improved alongside a Bitcoin rally. According to crypto data aggregate CoinGecko, Bitcoin rose from $89,799 to a two-month high of $97,704 on Wednesday in the past seven days. The last time Bitcoin was above $97,000 was on Nov. 14, when the index was in "extreme fear" amid a crash from all-time highs.

Market intelligence platform Santiment said in an X post that over the last three days non-empty Bitcoin wallets dropped by a net 47,244 holders, suggesting "retail had been dropping out due to FUD & impatience." Santiment added that "when non-empty wallets drop, it's a sign that the crowd is dropping out, a good sign," and that the price bounce has been supported by a seven-month low of 1.18 million Bitcoin on exchanges.

Key Topics

Crypto, Bitcoin, Coingecko, Santiment, October Liquidation, Bitcoin Wallets