Bitcoin(BTC) steps out of ‘Fear’ for the first time in 9 months
Over the weekend, the Bitcoin Fear and Greed Index reached 52, its first neutral score in three quarters.
Following several months of fear, the highly-referenced Bitcoin Fear and Greed Index moved into neutral territory over the weekend.
A neutral level of 52 was reached by the index on Jan. 15, its highest level since April 5. Over the past seven days, the BTC has gained 24%.
Market sentiment dropped to 9 in June 2022, a multi-year low. Since then, it has hovered between 20 and 30 in the “Extreme Fear” category. In mid-2022, it registered its longest streak of extreme fear.
The fear and greed index is based on “motions and sentiments from various sources,” such as current volatility, market momentum and volume, social media, and Google Trends data.
Data from these sources is combined to generate a simple number that summarises the emotional state of Bitcoin and crypto markets.
It is divided into five categories, from extreme fear to extreme greed, the latter of which has not been seen since October 2021.
At the time of writing, the index had fallen back to 45, putting it back in the “Fear” category, indicating that confidence has yet to fully recover.
Meanwhile, Bitcoin has experienced its second-longest winning streak in history, with a 12-day run this month. Since the beginning of the year, the asset has increased by 28%.
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