Categories: Bitcoin News

Crypto Fear and Greed Index is neutral, affecting Bitcoin’s valuation

Bitcoin was earlier rallying at less than $40,000. That has changed, and so has the reflection in the Crypto Fear and Greed Index. It was previously dancing between greed and extreme greed, especially on January 9, 2024, but the index now shows that there is a neutral stand on the books. Bitcoin has found a soft spot between $41,000 and $42,000.

The neutral phase has been noted with 54/100 points on the margin since 56/100 represents a spot in the greed territory. The CFGI has considered several factors for evaluation, including, but not limited to, volatility, social media, market momentum, volume, and dominance.

Interestingly, Bitcoin shines in all the factors. Dominance, however, remains the favorite of all. The total crypto economy is worth approximately $1.715 trillion. Out of which, the market cap of Bitcoin is roughly $833 billion. The dominance of BTC comes to 48.6%.

Bitcoin was at its peak in the Index on January 9, 2024. This can be credited to the speculation of Bitcoin ETF approval. It was reflected in the value at which BTC was exchanging hands. It had touched $47,000 for a few moments before slipping down by a huge margin.

At the time of drafting this article, BTC is being traded at $42,162.46, a drop of 0.82% in the last 24 hours. It further marks a jump of 2.54% in the last 7 days and a slip of 1.22% in the last 30 days. BTC was trading below $40,000 for some time.

Its market cap now stands at $827 billion, down by 0.66%. The 24-hour volume is up by 14.04% to $15 billion. There is a chance that Bitcoin may inch a bit higher in the days to come. Its oscillators, MAs, and moving averages depict balance plus neutrality to signify that the token is poised for another significant movement. This is likely a hint about Bitcoin Halving coming to the rescue again.

It is tentatively scheduled to happen in the middle of the year. Speculation is that it would kick the price up almost instantly instead of going unnoticed. Fluctuations continue to happen every day. A shift to a neutral phase by the CFGI is still praiseworthy.

ETH has not shown any sign of leaving its camp. The token is listed at $2,265.55, with a fall of 0.92% in the last 24 hours. The community’s short-term expectations are for Ether to surpass $2,300 at the earliest. That would pave the way for the token to achieve the milestone of $2,400.

Similarly, the Bitcoin community expects the native token to touch $48,000 and then aim for $65,000, probably by the end of this year. Ultimately, all sights are set on the $100k mark.

Paul Jolin

Paul Jolin is an economist having experience in financial research. He joined CoinNewsSpan in 2017 and since then has been working with the team to offer best price analysis and review stories on the crypto space. He is optimistic about blockchain technology's use cases in terms of financial freedom. He also has experience as an independent trader.

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Paul Jolin