Investor Greed Increases Amid Bitcoin ETF Anticipation

With bitcoin buying and selling larger amid rising anticipation of a spot bitcoin exchange-traded fund (ETF) approval within the U.S., investor moods have clearly shifted. The index measuring the steadiness between worry and greed feelings of individuals within the crypto market entered the inexperienced zone of the dimensions this week.

Crypto Fear and Greed Index Registers Bullish Market Sentiments

The value of bitcoin (BTC) surged this week, seemingly in response to developments interpreted positively by buyers anticipating the regulatory approval of America’s first spot bitcoin ETF. BTC is buying and selling properly over $34,000 on the time of writing, in comparison with round $28,000 final Thursday.

The change in sentiment was rapidly registered by the Crypto Fear and Greed Index (CFGI) which exceeded 70 factors out of 100 this week and stands at 71 (greed) on Oct. 26, in line with the one devised by the software program improvement platform Alternative.me.

Last week, the indicator was within the impartial zone and final month it was beneath 50 (worry). On this scale, zero means “excessive worry,” when many fearful buyers are irrationally promoting, whereas 100 represents “excessive greed” with many individuals shopping for throughout a rising market.

Coinmarketcap’s Fear and Greed Index is at present barely larger, at 72 factors. According to the crypto knowledge aggregation web site, the indicator remained impartial for many of October earlier than coming into the inexperienced zone this week when market sentiments modified considerably.

The index had been predominantly expressing buyers’ worry between round mid-August and late September and the final time it registered greed earlier than that was in mid-July, the chart offered by Coinmarketcap.com exhibits.

Market moods in 2023 have been influenced to an amazing extent by adverse information associated to the continued regulatory crackdown on the business since final yr’s collapses of main platforms within the house resembling cryptocurrency alternate FTX.

The prospects of the U.S. Securities and Exchange Commission (SEC) approving a spot bitcoin ETF within the coming months have performed a balancing position. According to a latest analysis by Galaxy Digital, a spot-based bitcoin ETF would boost the price of BTC by 74% within the first yr after launch.

Do you anticipate the Crypto Fear and Greed Index to proceed to extend within the coming weeks? Tell us within the feedback part beneath.