Cryptocurrency market investment sentiment has shown a clear turnaround. After a prolonged period of conservatism and hesitation lasting three months, the market sentiment has officially shifted from “fear” to “greed.” This is the first time since October last year that investors have regained bullish enthusiasm.
According to data from Alternative.me, the widely watched “Crypto Fear & Greed Index” rose to “61 points (out of 100)” today (15), officially entering the “greed” zone. Just the day before, the index remained at a neutral level of “48 points”; in the preceding weeks, market sentiment had long hovered in the “fear” or even “extreme fear” zones.
Looking back at the start of this downturn, it was the devastating “liquidation massacre” on October 11 last year, when derivatives positions worth up to 19 billion USD were forcibly closed in a single day, severely damaging market confidence. The competing coins collectively collapsed, prompting investors to withdraw and enter “hedging” mode.
In November and December, the index repeatedly dipped into single and double digits, reflecting a state of extreme panic and silence in the market.
Recently, the market sentiment has reversed almost in sync with Bitcoin’s price movement. In just the past 7 days, Bitcoin surged from $89,800 to break through and today early morning, it reached $97,704, hitting a 2-month high and successfully stabilizing market morale.
It is worth noting that the Fear & Greed Index is an emotional indicator, not a trading signal. Historically, “extreme fear” often appears when the market is approaching a bottom; conversely, prolonged periods of “extreme greed” are usually associated with market highs.
Currently, the index stands at “61 points,” indicating a significant increase in risk appetite, but it has not yet reached the “extreme euphoria” state often seen at the peak of previous bull markets (index over 80).
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