The widely used Bitcoin Fear and Greed Index entered neutral territory over the weekend after several months of fear.
The index rose to its highest point since April 5, 2022, a neutral level of 52 on January 15. The action was taken after Bitcoin’s (BTC) seven-day gain of 24%.
Market sentiment trackers hit a multi-year low of 9 in June 2022. Since that time, it has stayed between 20 and 30 for “extreme fear.” Additionally, it recorded its longest-ever streak of extreme fear in the middle of 2022.
The fear and greed index gathers its movements and emotions from various sources, such as information from Google Trends, social media, market volume and momentum, and current volatility. The information from these sources then generates a single number that summarizes the emotional landscape surrounding BTC and crypto markets.
The index has five categories. It ranges from extreme fear to extreme greed, the latter of which has yet to be seen since October 2021.
At the time of writing, the index had fallen back to 45, putting it back in the “fear” category, indicating that confidence has yet to recover fully.
On CoinMarketCap’s top 10 list by capitalization, Solana posted the biggest loss, falling 5.612% to trade at US$22.89. Solana, who increased by 58.22% in a week, is still the best performer on the 2023 list. The token has recovered since Alameda Research, the brokerage arm of FTX, sold it off in an effort to raise money to prevent the companies’ demise.
XRP is still up 11.51% for the week despite dropping 2.71% to US$0.38. A legal dispute between the US Securities and Exchange Commission and Ripple Labs Inc., which uses XRP in its payment network, casts doubt on the token’s future, causing XRP to grow less than most other major cryptocurrencies.
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