The cryptocurrency fear and greed index has reached its highest point since bitcoin hit $69,000. In November 2021, the index last displayed a value of this kind.
- Tuesday saw a “Greedy” reversal in the Bitcoin Fear and Greed Index.
- The index last displayed a number like this in November 2021.
- The current price of Bitcoin (BTC) is around $28,000.
After many bank failures that favoured cryptocurrencies and anti-crypto rhetoric from U.S. authorities, the cryptocurrency sector was on the verge of collapse only a few weeks ago.
Cryptocurrency investors are beginning to feel positive, much as they did at the height of the last bull market, as the U.S. financial sector seems to have survived one of the worst crises in recent memory.
Fear and Greed Index for Crypto Increases
The traditional Crypto Fear and Greed Index has changed from “Fearful” to “Greedy,” demonstrating the bullishness of cryptocurrency investors. The index is presently at 68, showing that cryptocurrency is receiving a lot of investment.
The index value of 68 is the highest since the pinnacle of the last crypto bull run. As bitcoin (BTC) touched $69,000 in November 2021, the index value increased to above 80, and the total market value of cryptocurrencies surpassed $3 trillion.
According to information from CoinGecko, Bitcoin is now selling at around $28,000. That’s a 35% increase over the previous week.
Also, the price of Ethereum (ETH) has significantly increased since last week. According to CoinGecko, the price of ETH is now $1,800.
The overall value of the cryptocurrency market is presently $1.22 trillion. That’s a significant increase from when three crypto-friendly banks, Silvergate, Silicon Valley Bank, and Signature Bank, were abruptly shut down over the course of a week, causing widespread concern among cryptocurrency investors.
The announcement of the cascading bank collapses caused large drops in bitcoin, ether, and the whole crypto market. However, once U.S. authorities and the Federal Reserve provided assurances that all depositors at the aforementioned banks would be completely insured, the market swiftly recovered.
Circle, the USDC issuer with over $3 billion trapped in Silicon Valley Bank, was one of those depositors. In response to the news, USDC depegged and dropped as low as $0.87 before regaining its peg.
On the other hand
- The Fear and Greed Index might swiftly flip to “Fear” while inflation has yet to drop internationally, and central banks continue to boost interest rates.
Why It’s Important
A reliable tool for determining the precise attitude of cryptocurrency investors is the Fear and Greed Index. Yet, since narratives and emotion in the cryptocurrency market shift frequently, investors should always do their own research before choosing where to invest.
Learn more about the price movement of bitcoin here:
Ethereum Eyes $2K as Bitcoin Breaks $28,000 in the Wake of the Financial Crisis
Learn more about Circle’s initiatives to grow in Europe here:
Days after the USDC Depeg, Circle applies for a cryptocurrency licence in France
