Bitcoin Greed Index Downgraded to ‘Neutral’ as ETFs Fail to Buy Value
The Crypto Fear and Greed Index has returned to “neutral” levels – last seen in October 2023 – and just days after the historic acceptance of spot Bitcoin ETFs in the United States.
According to the index, Bitcoin's market sentiment score currently rests at 52 out of 100 – the lowest score since October 19, 2010, when bitcoin traded at an average daily price of $31,000.
The switch comes less than a week after the Crypto Fear and Greed Index briefly dipped to the 76 “Extreme Greed” mark, as the market awaited approval of spot Bitcoin ETFs.
The Crypto Fear and Greed Index collects and weighs data from six market key performance indicators to score daily market sentiment: Volatility (25%), Market Speed and Size (25%), Social Media (15%), Surveys (15%), Bitcoin dominance (10%) and trends (10%).
The price of Bitcoin rose to $49,000 within 24 hours of approving the SEC decision, on January 12, Bitcoin fell as low as $41,500 as traders locked in profits.
Bitcoin has since bounced back slightly and is changing hands around $42,200 at the time of publishing data from TradingView.
Related: Bitcoin Price Sells Off After ETF Approval – Have Investors Turned Bearish?
Meanwhile, there has been uncertainty in the space of Bitcoin ETFs since their launch, with conflicting data about their performance and a lack of more detailed information about the new investment vehicles.
1/ Why the reported BTC ETF flows are incorrect.
There are many rabbit holes to jump down. First, let's point out why the reported flows are missing. Looking at the chart from @EricBalchunas (I believe it's correct), we can see many examples of noise pic.twitter.com/B2CPYD6VZo
— TardFiWhale.eth (@TardFiWhale) January 14, 2024
According to Google Trends, “Why Is Bitcoin Going Down?” For searches like Market participants recently surged 1,100% as they looked for meaning in Bitcoin's price action.
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