According to Cointelegraph: Bitcoin market sentiment, as measured by the Crypto Fear & Greed Index, has dropped back to "neutral" for the first time since October 2023, even after the recent launch of spot Bitcoin exchange-traded funds (ETFs) in the United States.
The index, which rates Bitcoin market sentiment from 0 (fear) to 100 (greed), demonstrates a current score of 52. This is the lowest score since October 19, 2023, when Bitcoin traded at an approximate average daily price of $31,000. The index briefly peaked to an "extreme greed" score of 76 due to market optimism around the spot Bitcoin ETFs approval.
Data points considered in the index comprise volatility (25%), market momentum and volume (25%), social media activity (15%), surveys (15%), Bitcoin dominance (10%), and trending topics (10%).
Bitcoin had experienced a surge up to $49,000 in the aftermath of the U.S. Securities and Exchange Commission's approval of spot Bitcoin ETFs. However, traders subsequently took profits, causing Bitcoin price to drop to as low as $41,500 by January 12. The cryptocurrency currently trades at around $42,200.
Google Trends data reveals an 1,100% surge in search queries for "Why is Bitcoin dropping?” amid the recent market uncertainty and confusion following the spot Bitcoin ETFs launch. Market participants are grappling with mixed data on the performance of these ETFs and lack detailed information about these new investment vehicles.
