The Bitcoin Fear & Greed index, which is a multifactorial measure of crypto market sentiment, rose to a 16-month high of 68 points today, signaling that investors are becoming more greedy than fearful.
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- The last time the Fear & Greed index exceeded 68 was Nov. 16, 2021, when Bitcoin traded above US$63,000.
- The index has a scale of 0 to 100 points, with 0 representing “extreme fear” and 100 representing “extreme greed”.
- Market sentiment picked up partly from the re-emergence of Bitcoin’s role as a store of value, followed by the global banking turmoil last week that resulted in the shutdown of Silicon Valley Bank and Signature Bank in the U.S.
- “The market’s confidence in traditional finance was dented, leading to a shift of funds to the crypto market,” James Wo, the founder and chief executive officer of crypto investment firm DFG, told Forkast. Bitcoin “has shown its superior risk and inflation resistance as an alternative asset, and will be further recognized by the mainstream.”
- Bitcoin slipped 0.22% in the 24 hours leading up to 9:00 p.m. in Hong Kong, trading at US$28,255, according to CoinMarketCap data.
- Whether Bitcoin is due for a price correction will also largely depend on The U.S. Federal Reserve’s upcoming interest rate decision on Thursday may also determine if Bitcoin values are due for.
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