The crypto fear and greed index returns to greedy territory
The Crypto Fear and Greed Index has reached its highest level since July, spending more than 60 points for two consecutive days.
The September 28 update of the index showed a score of 64, placing it in the territory of “greed” as the price of Bitcoin (BTC) briefly touched the $66,000 mark, according to CoinMarketCap.
The Crypto Fear and Greed Index was created to quantitatively represent the current “feelings and sentiments” on Bitcoin and the crypto market. The highest score is 100, and the lowest is 0.
An index score of 64 as seen on September 28. Source: alternative.me
August had an average “fear” rating, with the index's score struggling to break above 60. The 2024 low, 17, was also hit on August 6, when bitcoin was around $53,000.
The last time the index scored above 64 was in 2015. It was July 30 and the price of Bitcoin was around $66,000.
The Crypto Fear and Greed Index is calculated based on signals that influence the behavior of traders and investors, such as Google trends, surveys, market momentum, market dominance, social media and market volatility.
According to the Crypto Fear and Greed Information Resources page, the index score is based on 25% market volatility, 25% market momentum and 15% social media trends and other indicators.
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Analyst and Head of 10x Research, Markus Thielen, in a September 27 report, thinks there may be a Q4 crypto rally because Bitcoin's return above the $65,000 price level will create fear of extinction or FOMO in the market.
According to CoinMarketCap data, Bitcoin gained about 11.18% last month, the highest since March.
Meanwhile, Charles Edwards, founder and CEO of investment firm Capriol, predicted higher returns as traders shed gold and other stocks.
“Capital will move from gold to Bitcoin and stocks will be flat over the next 6 months,” Edwards said in a post on September 27.
Source: Charles Edwards
Asset management giant VanEck has positioned Bitcoin as a far superior asset to traditional assets this year, with spot BTC prices up 124% over the past 12 months.
However, the asset manager suggested that the recent downturn would “stun” investors.
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