This has not happened to Bitcoin (BTC) in two years.

TL; DR

2023 Bitcoin Surge: Bitcoin prices surged 120% in 2023, leading the BTC Fear and Greed Index to show “Greed” for more than 30 days, echoing late 2021 trends. BULLISH MARKET INDICATORS: A sign of index greed is fueled by factors such as social media buzz and market momentum in the US BTC ETF and expectations for a halving in 2024. Opportunity for a correction: High levels of greed among investors suggest a possible market correction, while periods of fear may provide buying opportunities, consistent with Warren Buffett's investment strategy.

Greed reigned among investors

In the year Bitcoin's impressive comeback in 2023, especially in the second half of the year, defied bullish predictions and underlined the asset's resilience to overcome every crash. The incredible 120% price increase since January 1 could be one reason for the popular BTC Fear and Greed Index. Blinking “Greed” soon.

In fact, the scale has remained in that range for more than 30 consecutive days, a growth that was finally seen in the last quarter of 2021 when the main cryptocurrency reached a peak of around $70,000.

The results of the index are based on several factors such as social media interaction, surveys, market momentum, volatility and more. It's safe to assume that the cryptocurrency market as a whole has been very bullish recently with the adoption of the BTC ETF and its upcoming halving (scheduled for spring 2024) in the United States.

Many experts and AI-powered language model ChatGPT predict that those elements could set a new all-time high for the major digital asset next year.

Those interested in exploring some price predictions from celebrities can watch our exclusive video below.

Is BTC correction coming?

The increasing greed among investors, however, may indicate that many individuals enter the market due to the FOMO (“fear of missing out”) effect. In other words, when investors are too greedy, the market may undergo a correction.

On the other hand, it may be a good idea for people to jump on the Bitcoin bandwagon when the indicator points to fear or extreme fear.

Such a thesis (although not focused on cryptocurrencies) is supported by American billionaire Warren Buffett. People should “fear when others are greedy and covet only when others are fearful,” said one of the leaders.