The post Crypto Market Sentiment Soars: Are We Entering a New Bullish Era? appeared first on Coinpedia Fintech News
Almost all the top cryptocurrencies have experienced positive growth in the last 24 hours, confirming the popular assumption that the cryptocurrency market has recently embraced a bullish sentiment. Bitcoin and Ethereum have grown by 3.3% and 2.0%, respectively. Meanwhile, BNB, Solana, XRP, and Dogecoin have recorded increases of 2.3%, 5.4%, 0.6% and 9.4%, respectively.
This is the right time to ask: how confident are investors about the future of the crypto market? The best way to measure this is to analyze the Crypto Fear & Greed index. Let’s assess the sentiment using the indicator. Ready?
Crypto Fear & Greed Index: What Does It Show
Before we use the indicator, we can take a few minutes to understand what this indicator actually does. In simple terms, this indicator enables us to understand what the current emotion of the market is. It can tell us whether the prevailing emotion is fear or greed. If the indicator shows fear, it reflects a lack of confidence among investors in the market. If it displays greed, it signals optimism.
At present, the Crypto Fear & Greed Index value remains at 61. What this indicates is that the crypto market is in the ‘Greed’ zone.
Therefore, we can assume that investors are currently very optimistic about the growth of the crypto sector.
Crypto Fear & Greed Index: Historical Value Analysis
It is the first time this month that the Crypto Fear & Greed Index has reached this high. The average Crypto Fear & Greed Index value for this month is 30. At the start of this month, it was just 26. It slipped to a low of 22 on September 6. In mid-September, the index showed the first sign of a shift in sentiment. On September 14, the value peaked at 50. By September 25, it had reached 59. This week, the average Crypto Fear & Greed Index stands at 54.
How the Market Behaves in Similar Greedy Phases?
An X post by CryptoRank states that the last time the index crossed the 60 mark was in late July.
On July 18, the value was 61, and on July 21, it reached 74. During this period, the price of Bitcoin climbed sharply from $64,127 to $67,188. Throughout the late July, the index mostly remained at about 60. Interestingly, during that time, the top cryptos like Bitcoin and Ethereum were largely bullish. The Bitcoin market fluctuated between $64,816 and $68,157, while the Ethereum market between $3,174 and $3,535.
Also Read : Best Crypto To Buy Right Now Amid Bitcoin Targeting $64K Breakout! ,
What’s Next for the Market?
Like what the market witnessed in late July, there is a chance that the new positive market sentiment will drive the prices of the top cryptos upward.
As indicated in the intro, the top cryptos have already expressed initial signs of growth.
In conclusion, the Crypto Fear & Greed index showcases the positive sentiment investors currently have about the future of the crypto market. However, it is important to be cautious, as too much optimism or overconfidence can sometimes lead to unexpected market downturns.