Last month’s statistics showed a Crypto Fear and Greed Index (CFGI) score of 25, indicating “extreme fear.” 30 days later, bitcoin prices rose 39% against the US dollar and the current CFGI score of 61 on January 30, 2023, reflects “greed.”
Crypto Fear Index Jumps to ‘Greed’, Etoro Market Analyst Attributes Bitcoin’s Rise to Shift in Investor Expectations
Index Jumps to ‘Greed’.
records show thatBitcoin (BTC)saw significant value growth in the first month of 2023, rising 39% against the U.S. dollar; on January 29, 2023,BTChit a 30-day high of $23,954 per unit and in the past 24 hours prices ranged from that value to a low of $22,988. This rise has boosted thesignificantly; the Crypto Fear and Greed Index (CFGI)hosted at alternative.me moved from the “extreme fear” zone to the “greed” range during the month.
Last week, according to alternative.me, the CFGI record showed a score around 50, meaning “neutral”; seven days later, the CFGI score rose to 61, meaning “greedy.” The website states that when crypto investors get too greedy, it indicates that the market is in for a correction; the CFGI score has remained above the neutral range of 50 since January 23, 2023, after spending considerable time below 45 before January 14, 2023. On Monday, the price ofBitcoin (BTC)saw weakness against the USD as traders took profits.
In a note sent to Bitcoin.com News, Etoro market analyst Simon Peters attributed the halt in the crypto price decline to changes in investor expectations regarding inflation and interest rate hikes from the Federal Reserve Peters noted that financial institution Goldman Sachs “released a positive note on bitcoin,” citing a recently released market performance sheet that showed bitcoin outperforming all other major asset classes, including gold, real estate, and emerging markets.
“Bitcoin has performed very well so far in 2023, up nearly 43% since January 1 on the eToro platform, up just over 50% from its lowest price of the past year – $15,523 – reached on November 9,” Peters wrote. With inflation and interest rate expectations now turning, investors have begun to think beyond the 2022 rate crash to the “next place” in their portfolios, and most asset classes have halted the declines seen in 2022,” the Etoro market analyst added.
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