FameEX Hot Topics | Crypto Market Sentiment Surges, Aligning with BTC's $69K All-Time High Era

The Crypto Fear & Greed Index, a metric measuring market sentiment, has recently surged to levels not seen since the peak of the crypto market rally in November 2021 when Bitcoin reached its record-high price of $69,000. Currently standing at a score of 72, it falls into the "greed" category. This marks a notable increase, with a six-point rise from its score on October 24 and a significant 16-point jump from its "neutral" rating of 50 on October 18.

This resurgence in market sentiment aligns with the growing anticipation that the United States Securities and Exchange Commission (SEC) might be on the verge of approving BlackRock's spot Bitcoin exchange-traded fund (ETF). The optimism is further supported by Bitcoin's impressive performance on October 24, when it recorded its most substantial single-day gain in over a year, surging by 14% and briefly surpassing the $35,000 mark.

The Crypto Fear & Greed Index calculates its score by analyzing data from six key market performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin's dominance (10%), and trends (10%). The last time the index reached a score of 72 was on November 14, 2021, just four days after Bitcoin hit its all-time high of $69,044 on November 10, 2021, based on CoinGecko data. In contrast, the index recorded its lowest-ever score of 7 on June 16, 2022, following the collapse of the Terra ecosystem initiated by Do Kwon.

The fallout from the Terra ecosystem collapse triggered a domino effect of price-related consequences, resulting in casualties such as hedge fund Three Arrows Capital and crypto lender Voyager Digital.

Amid the growing excitement surrounding spot ETFs, crypto investment firm Galaxy Digital has made an optimistic prediction. They anticipate that if a Bitcoin ETF receives approval, the cryptocurrency's price could surge by more than 74% in the first year. This forecast underscores the potential transformative impact of Bitcoin ETFs on the cryptocurrency market and investor sentiment.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.