On September 3rd, the cryptocurrency Fear and Greed Index is at 56 (Neutral), up from 47 the previous day, remaining in the neutral range, reflecting a balance between bulls and bears.
The index ranges from 0 (Extreme Fear) to 100 (Extreme Greed), and the current neutral state of 56 is logical:
Bearish factors: Bitcoin (down approximately 12.8% from historical highs), Ethereum (breaking key support levels), and other mainstream coins have corrected, with market fluctuations leading to leveraged positions being liquidated. Additionally, rising bond yields in multiple countries globally have suppressed risk appetite, causing market unease.
Bullish factors: Institutions like Morgan Stanley and BitMine continue to increase their holdings in Bitcoin and Ethereum. A joint statement from the U.S. SEC and CFTC paves the way for compliant spot cryptocurrency trading, and the increase in Google search volume for Memecoins indicates a resurgence of retail interest. Some investors believe the correction is a healthy adjustment in a bull market.
This neutral index is a typical representation of the market entering a period of consolidation and directional decision-making, with macro uncertainty coexisting with positive micro developments in the industry: short-term traders may panic due to corrections and liquidations, while long-term value investors may see this as an opportunity to build positions.
