• The Crypto Fear and Greed Index (CFGI) jumped from 25 to 61 in the past month, indicating a shift from “extreme fear” to “greed.”
• The 39% increase in Bitcoin prices against the US dollar is attributed to a shift in investor expectations regarding inflation and interest rate hikes from the Federal Reserve.
• Etoro’s market analyst, Simon Peters, noted that financial institution Goldman Sachs’ entry into crypto trading has created more confidence in the crypto market.
Recent statistics have revealed a significant jump in the Crypto Fear and Greed Index (CFGI) in the past month. The Index, hosted on alternative.me, began the month with a score of 25, indicating “extreme fear,” but thirty days later, the score had risen to 61, reflecting “greed.” This rise has been attributed to a 39% increase in Bitcoin prices against the US dollar, indicating that investor sentiment has shifted significantly.
The jump in Bitcoin prices has been attributed to a shift in investor expectations regarding inflation and interest rate hikes from the Federal Reserve. Etoro’s market analyst, Simon Peters, noted in a statement to Bitcoin.com News that the entry of major financial institutions such as Goldman Sachs into the crypto trading market has also helped to create more confidence in the market. Peters noted that this confidence has led to a surge in Bitcoin prices, with the cryptocurrency reaching a 30-day high of $23,954 per unit on Jan. 29, 2023.
The CFGI score has remained above the neutral range of 50 since Jan. 23, 2023, after spending a significant amount of time below 45 prior to Jan. 14, 2023. Although the score has reached the “greed” range, Peters warned that when investors become too greedy, it signals that the market is due for a correction.
The rise in Bitcoin prices and the CFGI score have been welcomed by many in the crypto industry, as they indicate a renewed level of confidence in the market. However, it remains to be seen if this confidence will be sustained in the coming months.