Bitcoin’s recent price drop has sent the Crypto Fear & Greed Index tumbling back to levels not seen since October. As of December 30, the index stood at 65, marking the first time it has dropped below 70 since October 24. Although still categorized as “Greed,” this is the lowest the index has been since mid-October.
Bitcoin has seen a decline of 13.7% over the last 12 days, with its price floating at $93,000. The decline has brought market participants to a frenzy, with traders warning of a “huge dump” and a shift toward stablecoins.
The Fear & Greed Index measures market sentiment by taking into account the trend of the market, social media, surveys, and Bitcoin’s market share. While it had stayed above 70 throughout most of November and December, peaking at 94 on November 22, this has to do largely with optimism regarding post-election U.S. news and the election of pro-crypto politicians.
At the time of writing, though still on the decline, the Fear & Greed Index stays in the “Greed” zone, even though sentiment is transitioning.
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