The Crypto Fear & Greed Index has reverted to “neutral” levels, marking the first time since October 2023, despite the recent introduction of spot Bitcoin ETFs in the United States.
As per the index, Bitcoin’s current market sentiment score stands at 52 out of 100. This marks the lowest score since October 19, 2023, when Bitcoin traded at an average daily price of approximately $31,000.
The shift to “neutral” occurred within a week of the Crypto Fear & Greed Index briefly reaching an “extreme greed” score of 76, coinciding with market anticipation surrounding the approval of spot Bitcoin ETFs.
The index utilizes data from six key performance indicators to assess market sentiment daily. These indicators include volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%).
Following the U.S. Securities and Exchange Commission’s historic approval of spot Bitcoin ETFs, Bitcoin experienced a surge to as high as $49,000. However, by January 12, the cryptocurrency retreated to $41,500 as traders opted to secure profits.
As of the latest data from TradingView, Bitcoin has stabilized around $42,200. Despite the positive momentum following the ETF approval, uncertainties persist, with conflicting data on the performance of spot Bitcoin ETFs and a lack of detailed information about these new investment vehicles.
