The Bitcoin Fear and Greed Index, a tool for gauging the mood of the crypto market (also generally referred to as the Crypto Fear and Greed Index), has returned to levels last seen during the peak market rally in November 2021. The Bitcoin Fear and Greed Index currently stands at 71, placing it within the ‘greed’ ranking. This upswing in market sentiment has been driven by the potential recent approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission.
On October 24, Bitcoin experienced its largest single-day rally in over a year, with its price briefly surpassing the $35,000 mark. This level of market sentiment was last seen on November 14, 2021, just after Bitcoin hit its all-time high of $69,044. Notably, the Bitcoin Fear and Greed Index fell to its lowest-ever score of 7 in June 2022, following the collapse of Do Kwon’s Terra ecosystem which had significant repercussions on the crypto market.
Following recent excitement around spot ETFs, Galaxy Digital, a crypto investment firm, predicts that Bitcoin’s price could surge by over 74% in the first year following a successful ETF approval. The crypto market seems to be riding a wave of optimism, as reflected in the current Crypto Fear and Greed Index score.