Cryptocurrency market sentiment has moved into a “neutral” phase today, marking a significant change after nearly three months in the “greed” phase.
Cryptocurrency Market Sentiment Turns 'Neutral' Following Bitcoin ETF Approval
The index, which operates on a scale from 0 to 100, currently reads 52 points. Scores close to zero indicate a state of “extreme fear”, while scores close to 100 indicate “extreme greed”.
Over the past few months the index has consistently remained in the “greed” zone. The index, which started on October 24 of the previous year, reached a peak of 76 points on January 9.
This increase was largely driven by the US's approval of spot Bitcoin exchange-traded funds (ETFs).
The Crypto Fear and Greed Index considers various factors in its calculations. These include market volatility, trading volume, social media trends and market dominance.
A value close to 100 is seen as a bearish signal, while a value close to 0 is interpreted as an uptrend.
*This is not investment advice.