Bitcoin Fear and Greed Index Spikes to 16-Month High as BTC Exceeds $28K
The Fear and Greed Index – a metric that shows the overall sentiment toward bitcoin – currently points at 66, the highest level since November 2021.
One factor behind the investors’ predominantly bullish perspective could be the impressive price performance of the primary cryptocurrency, which has been up nearly 30% for the past week.
Greed Among Investors
Most cryptocurrencies, including bitcoin, have recently shown remarkable resilience to the global economic issues surging to levels unseen in several months. The primary digital asset recently tapped $28,500, increasing its price by almost 30% in one week.
The rally seems to have affected the popular Bitcoin Fear and Greed Index – a metric that tracks numerous segments, such as price volatility, social media comments, and surveys, to determine the momentary investor sentiment towards BTC.
Currently, it sits in “Greed” territory, pointing at 66. The last time the index reached that mark was in mid-November 2021, a few days after bitcoin hit its all-time high price of nearly $70,000.
The bullish stance on the asset coincides with the view of some crypto proponents that the bear market has finally loosened its grip. They believe the asset class could continue its impressive performance in the background of a potential banking crisis.
Bitcoin and the altcoins are yet to be put to the test after the US Federal Reserve announces the results of its FOMC meeting on March 22. The institution is likely to raise interest rates by 25 basis points, which has caused considerable price swings for the primary cryptocurrency on previous occasions.
The Founder of DoubleLine Capital – Jeffrey Gundlach (better known as the “Bond King”), agreed with the assumption that the Fed’s next increase will be 0.25%. However, he predicted this will be the last one, suggesting the central bank will switch to other inflation-fighting measures.
Entirely Different Picture Than 2022
Seeing bitcoin entering the “Greed” zone seems like a mirage compared to the trends from last year when the index was mostly flashing at “Fear” or “Extreme Fear.”
Some of the reasons that caused such uncertainty were the countless collapses and scandals in the industry last year, with the Terra crash, Celsius bankruptcy, and FTX demise being among the infamous examples.
In any case, last year’s lower prices of digital assets could have indicated good buying opportunities for investors, while the current “Greed” sentiment could result in a possible correction. A supporter of this investment guidance is Warren Buffett – a legendary investor and one of crypto’s most fierce critics.
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