Greed-o-meter For Bitcoin Nosedives To ‘meh’ With ETFs Failing To Lift Prices

The Crypto Fear and Greed Index has returned to a “neutral” state for the first time since October of last year, even with the recent introduction of spot Bitcoin ETFs in the United States just days ago.

The Crypto Fear and Greed Index has recently dropped to “neutral” levels, a status not observed since October 2023, and this follows closely on the heels of the groundbreaking approval of spot Bitcoin ETFs in the United States.

As per the index, Bitcoin’s current market sentiment score stands at 52 out of 100, marking its lowest score since October 19 of the previous year, a time when Bitcoin was averaging a daily price of around $31,000.

The change occurred within a week of the Crypto Fear and Greed Index briefly reaching an “extreme greed” score of 76, coinciding with market expectations surrounding the approval of spot Bitcoin ETFs.

The Crypto Fear and Greed Index assesses market sentiment daily by collecting and evaluating data from six key performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%).

Following the SEC’s approval of spot Bitcoin ETFs, Bitcoin experienced a surge to as high as $49,000 within 24 hours. However, by January 12, the price retreated to $41,500 as traders opted to secure their profits.

As of the current publication, Bitcoin has stabilized somewhat and is trading around $42,200, according to TradingView data.

The launch of spot Bitcoin ETFs has introduced uncertainty, with conflicting data on their performance and a scarcity of information regarding the finer details of these new investment vehicles.

1/ A 🧵 on why reported BTC ETF flows are incorrect.

There are multiple rabbit holes to jump down. First, let’s point out why the reported flows appear off. Looking at the table from @EricBalchunas (I’m trusting it’s accurate), we can see multiple examples where volume is pic.twitter.com/B2CPYD6VZo

— TardFiWhale.eth (@TardFiWhale) January 14, 2024

As indicated by Google Trends, searches for “Why is Bitcoin dropping?” have seen a significant spike of 1,100%, reflecting the heightened interest of market participants seeking insights into the recent fluctuations in Bitcoin’s price.

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