The ‘crypto fear and greed index’ is depicting that investors are extremely greedy at the moment. Metrics published by alternative.me showed a value of 92 on Wednesday, February 10th.
Bitcoin went bullish on Tuesday after Tesla’s 1.5 billion dollar investment in BTC was revealed. Other popular currencies also followed the suit and hit record high values. Not so surprisingly, this euphoria led investor’s sentiment to extreme greed.
What does It Mean?
The ‘fear and greed index’ takes multiple factors into account for measuring sentiments. These include Google trends data, market cap share, market volume, volatility and social media discussions volume. The scale has values from 0 to 100. Zero means ‘extreme fear’ whereas 100 means ‘extreme greed’. Yesterday, the value was hovering at 95.
The sentiment of fear depicts that investors are selling their assets and are backing off from putting their money into the market. Resultantly, asset prices fall and prompt the buying trend. It classic ‘buy the dip strategy‘ in crypto trading.
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Extreme greed rises when the market is bullish. It depicts that market corrections will be coming soon. Last time the greed scale was at 95 on January 6th. The price rose to hit 41,000 USD two days after. Nonetheless, a price correction quickly followed taking the value down to 28, 750 USD on January 21st.
In the current episode, extreme greed on Tuesday took the bitcoin price to an all-time high value of 48K USD. Meanwhile, ether hit 1,800 USD for the first time ever and dogecoin surged by 7% to hit 0.08 USD. The soaring market prices were the obvious result of investors’ greedy moves.
Crypto investors are extremely greedy today as well. Altcoins are soaring and BTC price is above 46K. Hence we expect a price correction in due course of time.