The cryptocurrency market continues to experience notable developments, with Bitcoin‘s price declining as the United States approves spot exchange-traded fund (ETF) applications. The Crypto Fear and Greed Index has dropped to its lowest level in 100 days, settling at a “Neutral” sentiment range with 48 points on January 24.
The index, which reflects market sentiment, has decreased by two points from the previous day and by 15 points compared to the same week, indicating a shift from “Greed” to a lower sentiment level. On October 16, 2023, as Bitcoin traded just above $28,500, the index marked its 100-day low point with a score of 47.
The index compiles data from six fundamental market performance indicators daily to score crypto market sentiment. The indicators include 25% volatility, 25% market momentum and volume, 15% social media, 15% surveys, 10% Bitcoin dominance, and 10% trends, all contributing to the index’s final score.
Market developments and the intensity of the news cycle directly influence the Crypto Fear and Greed Index, providing investors with valuable insights into market sentiment.
Bitcoin’s price dropped below $40,000 following the approval of multiple spot Bitcoin ETF applications in the U.S. Grayscale Bitcoin Trust (GBTC) experienced over $2 billion in outflows after converting to an ETF, affecting the market sentiment. The index showed optimism with sentiment in the “Greed” zone since the end of October, following the ETF approvals.