Crypto Market Sentiment Strengthens, Fear & Greed Index Enters "Greed" Zone
The Crypto Fear & Greed Index has risen from 64 last week to 70 today, indicating stronger bullish sentiment among investors. This index, which measures market emotions based on multiple factors, is now in the "Greed" zone, reflecting growing optimism after a period of fluctuations.
According to data from alternative.me, the current index stands at 70, classified as "Greed." For comparison, yesterday it was at 69 (still "Greed"), last week at 64 ("Greed"), and last month it reached 79 ("Extreme Greed"). The index is calculated using key components such as volatility (25%), market momentum and volume (25%), social media activity (15%), Bitcoin dominance (10%), and Google search trends (10%).
This rise in sentiment coincides with Bitcoin's recovery, recently surpassing $122,000, driven by institutional adoption and positive regulatory developments, including a proposed crypto sandbox between the U.S. and the U.K. However, the "Greed" level can also serve as a cautionary signal, as excessive euphoria may lead to a market correction.
Analysts predict that if this sentiment persists, the crypto market could see further gains. Still, investors are advised to remain cautious about volatility, especially with external factors like global monetary policies potentially impacting price trends.
