The excitement around spot ETF applications continues to influence the cryptocurrency markets, with the Crypto Fear and Greed Index entering the “extreme greed” zone. Bitcoin‘s market sentiment score has reached 76 out of a possible 100, marking the highest point since its peak price in mid-November 2021. On December 4th, Bitcoin broke the $40,000 barrier and climbed to $44,000 the following day.
Previously, the index hit “extreme greed” on November 11, 2021, with a score of 77, just a day after Bitcoin reached its all-time high price. The Crypto Fear and Greed Index gathers data from six key market performance indicators: volatility, market momentum and volume, social media, surveys, Bitcoin dominance, and trends.
When BlackRock applied for a spot Bitcoin ETF on June 15, the market sentiment score was at 41 in the “Fear” zone, but it rose to 59, indicating “Greed,” after several other asset management firms followed suit. The highest recorded sentiment score was 95 on June 26, 2019, while the lowest was 7 on June 16, 2022, following the collapse of Do Kwon’s Terra ecosystem.
In conclusion, the impact of spot ETF applications has led to high greed in the Bitcoin market, as reflected by a score of 76 on the Crypto Fear and Greed Index. BlackRock’s spot Bitcoin ETF application and subsequent similar moves by other companies have increased the market sentiment score. The index’s historical peak was in June 2019, with its lowest point in June 2022. At the time of writing, Bitcoin’s price has retreated to $46,850.