The Crypto Fear & Greed Index, a popular gauge of market sentiment, has hit a low not seen since October. This raises questions about the possibility of an altcoin season, as some investors fear that the biggest price gains are already behind us.
Bipolar nature of the crypto market
For experienced traders, the volatility of the crypto market comes as no surprise. Moments of ecstasy are often followed by periods of fear. The Fear & Greed Index recently dropped 19 points to a score of 50 in one day, returning market sentiment to the neutral zone.
This decline is notable because the index has mainly moved in the “Greed” and “Extreme Greed” zones over the past three months. The index score is calculated based on factors such as market volatility, trading volumes and social media trends.
What causes the negative sentiment?
The sudden drop in the Fear & Greed Index is attributed to several factors, including a sharp fall in the price of Bitcoin (BTC). On January 9, the Bitcoin price fell below $92,000 after the US Department of Justice gave the green light to sell 198,000 BTC, with an estimated value of $6.5 billion. Although sales have not yet begun, the news has shaken the market and created uncertainty, especially in the short term.
In addition, macroeconomic factors contribute to the gloomy sentiment. Analysts warn that the US Federal Reserve (Fed) may further tighten its monetary policy in 2025. This could have a negative impact on risky assets such as Bitcoin and other cryptocurrencies.
Claim €10 free today and pay no trading fees on the first €10,000!
Grab this unique opportunity with Newsbit and Bitvavo by creating an account now via the button below. Deposit just €10 and immediately receive €10 free. In addition, you can trade your first €10,000 in trades for 7 days without any fees. Start today and benefit immediately from the growing popularity of crypto!
Create your account and claim your €10 free.
Don’t miss this opportunity to immediately benefit from the growing popularity of Crypto!
Source: https://newsbit.nl/crypto-fear-greed-index-op-laagste-punt-sinds-oktober-geen-altcoinseizoen-in-zicht/
