Bitcoin Sentiment Soars to 76, Reflecting Extreme Market Greed

Spread the love

The Bitcoin Market Sentiment Score, as indicated by the Bitcoin Fear and Greed Index, has reached 76 of January 9, 2024, which signals extreme market greed. This is the highest level since 2021 when Bitcoin peaked. The index considers various factors such as volatility, market momentum, social media sentiment, dominance and trends

The crypto market has seen high volatility in early 2024, mainly driven by market sentiment towards spot Bitcoin ETFs (Exchange Traded Funds). There was a significant sell-off in major cryptocurrencies on January 3, largely due to speculation that the US Securities and Exchange Commission (SEC) may deny approval to a spot bitcoin ETF​​.

Anticipation of the SEC’s ruling on spot bitcoin ETFs was a major driver of the recent spike in market sentiment. Bitcoin’s value increased significantly, surpassing $46,000, in response to this news, marking a significant increase both weekly and annually. That rally pushed bitcoin to $47,000 on Monday, causing nearly $150 million worth of short liquidations over the past 24 hours.

However, there is a high likelihood of extreme volatility due to pending ETF decisions. The potential approval of a Bitcoin ETF could result in significant market movements and increased risks. Investors and traders are advised to be cautious and prepared for potential pullbacks.

In summary, the current market valuation of 76 for Bitcoin reflects the heightened anticipation and excitement surrounding the potential approval of a Bitcoin ETF. While the market awaits the SEC’s decision, investors are advised to remain vigilant and consider the potential risks associated with increased market volatility.

Image source: Shutterstock

ALSO READ  MicroStrategy Earns $3 Billion as Bitcoin Price Breaks $47k

Leave a Comment