Bitcoin Fear and Greed has once again achieved “Greed” as the currency has steadied at $23,000.
The Fear and Greed Index, which measures the community’s overall opinion toward bitcoin, reached the “greed” zone for the first time since March 30, 2022.
This may be due to the price growth of the leading cryptocurrency during the first month of the year and the market’s general resurgence.
Bitcoin has begun the year on a positive note, contrary to the global financial crisis. According to CoinGecko, the price is presently at $23,000, a 40% rise from the final day of 2022.
The BTC Fear and Greed Index, a measure of current investor attitude toward the digital currency, remained in the “Fear” or “Extreme Fear” area for a number of months due to the extended bear market and the many bankruptcies and scandals in the sector.
However, the asset’s surge seems to have altered the pattern, as the measure pointed to 55 – “Greed” on January 27. About eleven months have passed since the previous time the Index hit that level.
Notably, the increasing confidence among cryptocurrency investors should not be seen as a direct driver for a resumed bull run. In reality, the indicator is in a condition of “Fear” or “Extreme Fear” which may signal a favourable purchasing opportunity, while overly greedy investors may imply a market downturn is imminent.
The asset’s strong performance during the first few weeks of 2023 caused some to anticipate the start of a new bull market. Managing the inflationary situation might contribute to a further Bitcoin boom in the coming months.
Almost every revelation of the US CPI statistics has resulted in increased volatility for BTC, and in most cases, inflationary increases have caused its value to decline. The data indicated that the United States attempts to fix the issues began to bear fruit. The inflation rate in the world’s largest economy reached 9.1% in June, the highest level in forty years, compared to 6.5% in December.
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