Fear and Greed Index at extreme levels due to BTC surge
Fear and Greed Index at extreme levels due to BTC surge
The Fear and Greed Index has exceeded 75 for the first time since June 2024, now indicating an “Extreme Greed” level. This measure began rising in mid-October alongside Bitcoin’s price surge.
The analytics service CryptoRank highlighted this index change, posting about it on their social media page on X.
Notably, “Extreme Greed” dominated the market only during the first two months of summer. By August, the index had begun to decline, with growth only resuming on October 15.
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Currently, there’s a clear correlation between the Fear and Greed Index’s rise and Bitcoin’s price increase. The leading cryptocurrency started gaining value around October 14-15, subsequently entering a bull phase and nearing its all-time high.
What is the Fear and Greed Index?
The Fear and Greed Index is a tool that measures emotional sentiment in the cryptocurrency market. It helps investors understand whether fear or greed currently dominates the market.
The index is calculated based on factors such as volatility, market volume, social media activity, and Bitcoin’s dominance. This tool is valuable for traders as it enables more informed decision-making and helps avoid emotional traps.
When the index shows a high level of fear, it could be a buying opportunity, as assets might be undervalued. On the other hand, a high level of greed may signal an overheated market with a potential price correction.
In July, the Fear and Greed Index reached its lowest point since January 2023, reflecting increased market uncertainty.
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