The Crypto Fear & Greed Index, a barometer for market sentiment, has recorded a 100-day low, coinciding with a downturn in Bitcoin’s value following the U.S. approval of several spot exchange-traded funds (ETFs).
As of January 24, the index fell to a score of 48, categorized as “Neutral.” This represents a slight decrease from the previous day and a more significant 15-point drop from the same date last week, when the market sentiment was in the “Greed” range.
This low point for the index is notable, as it last reached a similar score of 47 on October 16, 2023, a time when Bitcoin was trading just above $28,500, according to Cointelegraph Markets Pro. The index calculates daily crypto market sentiment by analyzing six key performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%).
Bitcoin experienced a significant high of nearly $47,000 on January 8, shortly before the approval of multiple spot Bitcoin ETFs in the U.S. However, since the introduction of these new ETF products, Bitcoin’s price has declined, falling below $40,000.
The Grayscale Bitcoin Trust (GBTC), in particular, has witnessed over $2 billion in outflows since its conversion to an ETF. This has contributed to consecutive days of net outflows from the 10 spot Bitcoin ETFs.
The market sentiment, as reflected by the index, was predominantly in the “Greed” territory from late October, driven by optimism surrounding the anticipated approval of spot ETFs. The index peaked at a score of 76 on January 1, just after the approval of several Bitcoin funds. This score was the highest since November 11, 2021, when it reached 77, following Bitcoin’s record high of over $69,000.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up