Bitcoin Hits Multi-Year High, Market Enters "Extreme Greed" Territory
Date: 2024-02-13 Author: Dima Zakharov Categories: IN WORLD
Bitcoin, the leading cryptocurrency, reached a significant milestone on February 12th by hitting $50,000, its highest level since November 2021. This surge has pushed the market sentiment into what analysts describe as a state of "extreme greed," as indicated by the Fear and Greed Index.
The Fear and Greed Index, which gauges market sentiment, has surpassed its previous multi-year high, reflecting the euphoria surrounding Bitcoin's latest rally. The index considers various factors, including volatility, market momentum, social media activity, surveys, Bitcoin dominance, and market trends, to assess investor sentiment.
Currently, the index resides in the "extreme greed" zone, indicating overwhelming bullish sentiment among investors. However, analysts note that this sentiment has not been consistently sustained since the beginning of 2024.
Notably, on January 11th, coinciding with the launch of spot Bitcoin ETF trading, the Fear and Greed Index peaked at 76 but swiftly retreated to 52 within three days. The lowest point in the past month was recorded at 48.
Prior to the recent surge, the cryptocurrency market had entered the "extreme greed" territory only once on November 11th, 2021, when Bitcoin reached an all-time high of $69,000, and the Fear and Greed Index reached 77.
