Final month, statistics confirmed that the Crypto Worry and Greed Index (CFGI) had a rating of 25, indicating “excessive concern.” Thirty days later, with a 39% enhance in bitcoin costs in opposition to the U.S. greenback, the present CFGI rating on Jan. 30, 2023, is 61, reflecting “greed.”
Crypto Worry Index Jumps to ‘Greed,’ Etoro Market Analyst Attributes Bitcoin’s Rise to Shift in Investor Expectations
Data present bitcoin (BTC) noticed vital worth progress within the first month of 2023, with a 39% enhance in opposition to the U.S. greenback. On Jan. 29, 2023, BTC reached a 30-day excessive of $23,954 per unit, with costs starting from that worth to a low of $22,988 over the previous 24 hours. This rise has considerably raised the Crypto Fear and Greed Index (CFGI) hosted on different.me, transferring it from the “excessive concern” zone to the “greed” vary in the middle of the month.
Final week, CFGI data confirmed a rating of round 50, indicating “impartial,” in accordance with different.me. Seven days later, the CFGI rating rose to 61, that means “greed.” The web site states that when crypto traders grow to be too grasping, it alerts the market is due for a correction. The CFGI rating has remained above the impartial vary of fifty since Jan. 23, 2023, after spending a major period of time beneath 45 previous to Jan. 14, 2023. On Monday, bitcoin (BTC) costs noticed weak point in opposition to the U.S. greenback as merchants took income.
In a observe despatched to Bitcoin.com Information, Etoro’s market analyst, Simon Peters, attributed the halt in crypto worth declines to a change in investor expectations relating to inflation and interest rate hikes from the Federal Reserve. Peters additionally famous that monetary establishment Goldman Sachs “printed a optimistic observe on Bitcoin,” citing a market performance sheet that was not too long ago printed, which exhibits Bitcoin outperforming all different main asset lessons, together with gold, actual property, and rising markets.
“Bitcoin has carried out extraordinarily properly to this point in 2023, rising practically 43% since 1 January on the eToro platform. From its lowest level prior to now 12 months – $15,523 – reached on 9 November, it’s up simply over 50%,” Peters wrote. “With inflation and rate of interest expectations now turning, most asset lessons have halted the declines witnessed in 2022 as traders start to suppose ‘the place subsequent’ for his or her portfolios past the 2022 fee hike crash,” the Etoro market analyst added.
What do you suppose is driving the rise in bitcoin costs and the shift within the Crypto Worry and Greed Index in the direction of ‘greed’? Share your ideas within the feedback beneath.
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