The recent Bitcoin price drop has caused the Crypto Fear & Greed Index to fall back to levels not seen since October. On December 30, the index was at 65, the first time it fell below 70 since October 24. Although it is still classified as “greed,” this is the lowest the index has reached since mid-October.
Bitcoin saw a 13.7% decline in the last 12 days and its price hovered around $93,000. The decline has sent market participants into disarray, with traders warning of a “huge dump” and a shift towards stablecoins.
The Fear & Greed Index measures market sentiment by taking into account the trend of the market, social media, surveys and Bitcoin market share. While the reading remained above 70 for most of November and December, peaking at 94 on November 22nd, much of this has to do with optimism about post-election US news and the election of pro-crypto politicians.
On…