Consolidation Takes Its Toll: Bitcoin Investors No Longer Greedy
The Bitcoin Fear & Greed Index has returned to a neutral score of 54, indicating a loss of optimism among investors. This index, created by Alternative, assesses trader sentiment based on trading volume, market cap dominance, volatility, social media sentiment, and Google Trends. Values above 54 indicate greed, while those below 46 indicate fear. The index previously peaked at 72 earlier in the month as Bitcoin's price rallied, but optimism has since faded as the price stabilized. Historically, extreme market sentiments often lead to contrary price movements. The reset to neutral could signal potential for a renewed bull run, as past instances show that dips into neutrality have preceded upward momentum. Currently, Bitcoin is priced around $102,800, reflecting a decline of over 2% in the past week.
