Crypto Fear & Greed Index Returns to Greed Zone

The Crypto Fear & Greed Index recently surged to its highest level since July, staying above the 60 mark for two consecutive days.

As of the update on September 28, the index hit 64, entering the “Greed” range while Bitcoin briefly climbed to around $66,000, according to CoinMarketCap.

This index is designed to quantify the emotions and market sentiment surrounding Bitcoin and the larger crypto space, with scores ranging from 0 (extreme fear) to 100 (extreme greed).

Throughout August, the crypto market spent much of its time in “Fear,” with the year’s lowest index score of 17 recorded on August 6 when Bitcoin was priced around $53,000. The last time the index hit a similar high was on July 30, when Bitcoin also traded near $66,000.

The index pulls data from several key sources, including Google search trends, market momentum, social media sentiment, and overall market volatility. It assigns weightings like 25% to market volatility and another 25% to market momentum, with other factors such as social media making up the remainder.

In a recent analysis from 10x Research, Markus Thielen, Head of Research, suggested a potential crypto rally in the fourth quarter. He cited Bitcoin’s recovery above $65,000 as a catalyst, potentially triggering FOMO (fear of missing out) in the market.

Data from CoinMarketCap reveals that Bitcoin has risen by about 11.18% over the last month, its strongest monthly performance since March.

Meanwhile, Charles Edwards, CEO of investment firm Capriole, predicted that significant capital will flow back into Bitcoin as investors move away from gold and traditional stocks. Edwards shared his outlook in a September 27 post on X, forecasting persistent Bitcoin demand in the next six months.

VanEck, a leading asset management firm, recently highlighted Bitcoin as the top-performing asset of 2024, with the cryptocurrency seeing a 124% rise in value over the last year. However, VanEck also acknowledged that the recent market dip has left some investors nervous.

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