28 C
New York
Sunday, July 21, 2024

Crypto Investor Greed Soars to November 2021 Highs as Bitcoin Crosses $59K

Must read

The Crypto Fear and Greed Index has shown that investors are currently as greedy as they were more than two years ago when Bitcoin (BTC) hit its all-time high of $69,000.

According to data on Alternative.me, crypto market sentiment is now as high as 82, representing a period of extreme greed among investors amid BTC’s surge past $59,000 for the first time since November 2021.

Investors in Extreme Greed Mode

The Crypto Fear and Greed Index tracks investor sentiment in the crypto market, analyzing data from factors like volatility, market momentum/volume, social media, surveys, Bitcoin dominance, and trends. The index measures the sentiment through numbers ranging from 0 to 100, representing extreme fear and greed, with 50 indicating a neutral zone.

The greedy sentiment in the crypto market is rising alongside BTC’s price. As of mid-January, when BTC traded at $46,000, and there was heightened anticipation about the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, the index hovered around 76, showing investors had just crossed over from the greed zone.

Following BTC’s rally above the $50,000 level in mid-February, the index rose to 79 for the first time since November 2021.

With BTC a few inches from $60,000, the index has moved to 82. The digital asset’s rally is driven by several catalysts, such as steadfast demand from the new Bitcoin ETFs and excitement about the upcoming halving event slated for April.

Bitcoin Supply-in-Profit Ratio Surges

The index’s current zone is a far cry from the different levels recorded in 2022, during the bear market, as multiple entities, including the Terra ecosystem, bankrupt crypto platforms FTX, Celsius Network, Voyager Digital, and Three Arrows Capital, met their demise. The series of events in that year sent the index tumbling to extreme fear levels.

However, the index has been above neutral since early October 2023 and has continued to rise alongside BTC’s price.

Meanwhile, BTC’s latest performance has put 95% of Bitcoin addresses in the profitable zone, with 0% of the wallets in loss. Likewise, the network’s supply-in-profit ratio is currently very high and the same as one recorded at the peak of the echo bubble in 2019, which signaled the beginning of the 2020 bull run.

SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

More articles

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 comments
Inline Feedbacks
View all comments

Latest News