Bitcoin‘s market sentiment has recently climbed to heights not witnessed since its price hit a record-breaking $69,000 in mid-November 2021, as indicated by the Crypto Fear & Greed Index. The index presently stands at 72 out of a possible 100, placing it firmly within the “greed” category. This marks a six-point rise from October 24 and a substantial 16-point jump from its “neutral” position at 50 on October 18.
Boosted by BlackRock ETF Speculation
The surging market sentiment aligns with growing anticipation regarding the potential approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission. On October 24, Bitcoin experienced its most substantial single-day gain in over a year, surging by 14% in one day and briefly breaching the $35,000 mark.
Analyzing the Crypto Fear & Greed Index
The Crypto Fear & Greed Index draws on data from six critical market performance indicators, each weighted differently: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%). This comprehensive analysis generates a daily score, reflecting market sentiment.
Fear & Greed Index score. Source: Alternative.me
The last time the index reached a score of 72 was on November 14, 2021, a mere four days after Bitcoin achieved its all-time high of $69,044 on November 10, 2021, as reported by CoinGecko data. This notable resurgence in sentiment signals growing optimism in the crypto market.
Galaxy Digital’s Bullish Prediction
Following the widespread enthusiasm for spot ETFs, crypto investment firm Galaxy Digital has made a bullish forecast, suggesting that Bitcoin’s price could potentially surge by more than 74% within the first year following regulatory approval.
Fear & Greed Index scores since Feb. 2018. Source: Alternative.me
As the Crypto Fear & Greed Index climbs to pre-$69K Bitcoin all-time high levels, it underlines the current optimism and positive sentiment pervading the cryptocurrency market, driven by both recent price surges and the potential approval of significant financial instruments.