Crypto Fear & Greed Index Reaches Extreme Greed

The Crypto Fear & Greed Index, which gauges market sentiment for Bitcoin and other cryptocurrencies, reached its highest "greed" level in nearly seven months on Nov. 10 as Bitcoin surpassed $81,000.

The index recorded a score of 78 out of 100, placing it in the “Extreme Greed” category for the first time since April 12, when Bitcoin was around $70,000, and anticipation for the 2024 halving was high.

Bitcoin entered the “Extreme Greed” zone (75-100) on Oct. 31 and has remained between 70 and 78 over the past week following Donald Trump’s victory in the United States presidential election.

On Nov. 10, Bitcoin rallied 6.15% to a new all-time high of $81,358 but has since pulled back to $80,182, according to CoinGecko.

The Crypto Fear & Greed Index has since eased slightly to a score of 76 as of Nov. 11.

Despite this, industry analysts expect Bitcoin to see further gains before Trump’s inauguration on Jan. 20, 2025.

The index calculates its score based on factors such as market volatility (25%), trading volume (25%), social media sentiment (15%), Bitcoin’s dominance (10%), and trends (10%). It previously included surveys (15%), but that metric is currently inactive.

Bitcoin's recent price surge has also sparked increased interest from retail investors, as reflected by a significant rise in Google searches for “Bitcoin” over the past week.

However, search interest is still below the levels seen during the last bull run, with a current score of 48 out of 100 compared to late May 2021, when search volumes peaked, according to Google Trends.

The bullish sentiment is being driven by Trump’s victory and the election of more pro-crypto politicians to the US Senate and House of Representatives for the 2025-2029 term.

Investors are also hopeful for a more crypto-friendly Securities and Exchange Commission (SEC) if Trump follows through on his plan to remove Gary Gensler as Chair.

According to crypto attorney Jake Chervinsky, SEC commissioner Mark Uyeda, who has been critical of the SEC’s enforcement-focused approach to regulation, could be a potential successor to Gensler.

Sources:

https://cointelegraph.com/news/crypto-fear-greed-index-hits-7-month-high-bitcoin-reaches-81000

https://alternative.me/crypto/fear-and-greed-index/

https://www.coingecko.com/en/coins/bitcoin

https://trends.google.com/trends/explore?date=today%205-y&q=bitcoin&hl=en