Crypto Sentiment Index Drops to 100 Day Lows
The Crypto Fear & Greed Index, which measures the market sentiment in the cryptocurrency world, recently reached its lowest point in 100 days.
This happened as Bitcoin's value continued to decline after the U.S. approved spot exchange-traded funds (ETFs).
On January 24, the Index fell to 48, indicating a neutral market mood. This was a slight decrease from the previous day and significantly lower compared to the same time last week, when the sentiment was more optimistic.
The lowest score in the last 100 days was 47, recorded on October 16, 2023, when Bitcoin's price was just over $28,500.
The Index combines data from various market indicators, such as volatility, market momentum, social media, surveys, and trends, to determine the overall sentiment each day.
Bitcoin's value peaked at nearly $47,000 on January 8 but dropped below $40,000 after the U.S. approved several spot Bitcoin ETFs.
The Grayscale Bitcoin Trust ETF, for instance, experienced more than $2 billion in outflows since its introduction.
The Index reflected high optimism in late October 2023 due to the market's positive reaction to the spot ETF approvals. It reached 76 on January 11, right after the ETFs were approved, marking its highest point since November 2021.
Sources:
https://cointelegraph.com/news/crypto-fear-greed-index-100-day-low-bitcoin-price-falls-etf
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