Greed

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Grayscale Bitcoin Trust

<p>The Crypto Fear &amp; Greed Index, a widely watched indicator of sentiment in the cryptocurrency market, has reached a 100-day low as Bitcoin (BTC) struggles to maintain its price following the recent approval of spot exchange-traded funds (ETFs) in the United States.&nbsp;</p>
<p>On January 24th, the index dropped to a score of 48, signaling a shift into the “Neutral” sentiment range. This represents a two-point drop from the previous day and a 15-point decline just a week ago when the sentiment was firmly in the “Greed” category.</p>
<p>The <a href="https://www.cryptopolitan.com/how-to-use-crypto-fear-and-greed-index/" rel="noopener noreferrer nofollow">Crypto Fear &amp; Greed Index</a>, which evaluates market sentiment using six key performance indicators, saw its score plummet to 48 on January 24th. This starkly contrasts the optimism in the market just a week prior when the index registered a “Greed” sentiment score. The current score of 48 is the lowest it has been in the past 100 days, dating back to October 16, 2023, when Bitcoin was trading slightly above $28,500.</p>
<h2 class="wp-block-heading" id="what-comprises-the-crypto-fear-greed-index">What comprises the Crypto Fear &amp; Greed Index?</h2>
<p>The index derives its sentiment score by analyzing various factors and assigning weights. The key components include volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%). These elements collectively gauge the overall mood in the cryptocurrency market, influencing investor sentiment and decision-making.</p>
<p>Bitcoin, the flagship cryptocurrency, reached a two-year high of nearly $47,000 on January 8th, shortly before multiple spot Bitcoin ETFs were approved in the U.S. However, since these new ETF products were introduced, Bitcoin’s price has experienced a notable decline, falling below the $40,000 mark.</p>
<p>One ETF, particularly the Grayscale Bitcoin Trust (GBTC), has seen significant outflows, with over $2 billion withdrawn since its conversion into an ETF. These outflows have contributed to a series of days with net outflows from the 10-spot Bitcoin ETFs.</p>
<h2 class="wp-block-heading" id="sentiment-shift-from-greed-to-neutral">Sentiment shift from Greed to Neutral</h2>
<p>The Crypto Fear &amp; Greed Index reveals a remarkable shift in market sentiment, transitioning from a prolonged period of “Greed” starting late October, driven by optimism surrounding spot ETF approvals, to the current state of “Neutral.”&nbsp;</p>
<p>On January 1st, the day following the approval of several Bitcoin funds, the index reached a score of 76, marking its highest point since it last peaked at 77 on November 11, 2021, following Bitcoin’s all-time high of over $69,000.</p>

Crypto Fear & Greed Index hits 100-day low as Bitcoin drops below $40,000

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