Emily Walker
Recent trends indicate that Bitcoin’s market sentiment has shifted away from extreme greed, reflecting ongoing bearish movements in BTC and the broader cryptocurrency market.
Current State of the Bitcoin Fear & Greed Index
The “Fear & Greed Index,” developed by Alternative, provides insight into the collective sentiment of investors in Bitcoin and other cryptocurrencies.
This index operates on a scale from zero to a hundred, where scores above 53 indicate greed among investors, and scores below 47 signify fear. Values within this range denote a neutral perspective.
Presently, the Bitcoin Fear & Greed Index reflects the following market sentiment:
The index currently sits at 74, indicating a prevailing sense of greed among investors, hovering near the threshold of extreme greed, which starts at 75. Conversely, extreme fear is defined as any score dropping below 25.
Historically, extreme levels of greed and fear have been pivotal for Bitcoin’s price movements, often correlating with market peaks and troughs. Typically, peaks align with extreme greed while troughs correspond with extreme fear.
Throughout the recent bullish trend, the index consistently remained within the extreme greed range, having just occupied this status yesterday.
The alteration in sentiment has occurred alongside Bitcoin’s price pullback and a downturn in the altcoin market. Observing historical trends, this decline in investor sentiment may ultimately create a favorable setting for a continued rally.
Additionally, an update on the Estimated Leverage Ratio for the BTC-USDT trading pair shows a recent decline, as noted by CryptoQuant’s CEO Ki Young Ju in a recent X post.
The Estimated Leverage Ratio indicates the average leverage used by futures market participants. A recent decrease in this ratio may be beneficial for Bitcoin, implying a reduced likelihood of disruptive mass liquidations.
Current BTC Price Update
Bitcoin’s price dipped to below $94,300 yesterday, but it has swiftly corrected, now standing at approximately $98,500.