The post Crypto Fear & Greed Index Jumps to 72, Entering ‘Greed’ Zone appeared on BitcoinEthereumNews.com.
Crypto Fear & Greed Index Rises to 72, Indicating Growing Market Optimism The Crypto Fear & Greed Index, a widely used sentiment indicator provided by Alternative.me, has jumped 28 points to 72 as of February 4, marking a shift from the Fear zone to the Greed zone. This surge reflects a significant improvement in market sentiment, suggesting that investors are becoming increasingly optimistic about crypto assets like Bitcoin (BTC) and Ethereum (ETH). How the Crypto Fear & Greed Index Works 📊 0-24: Extreme Fear – High selling pressure, potential market panic.📊 25-49: Fear – Cautious sentiment, market uncertainty.📊 50-74: Greed – Rising confidence, increased buying activity.📊 75-100: Extreme Greed – FOMO-driven rallies, potential for overbought conditions. With the index now at 72, the market has entered the Greed phase, signaling that traders are more confident in crypto price appreciation. What’s Driving the Increase in Crypto Market Optimism? Several factors are contributing to the crypto market’s improving sentiment: 1. Bitcoin Price Stability & ETF Demand Bitcoin ETFs continue to see strong institutional inflows, boosting BTC’s price. BTC price holding key support levels reinforces confidence in a potential rally. 2. Altcoins Gaining Momentum Ethereum (ETH) and Solana (SOL) have seen increased investor interest. Growing activity in DeFi and AI-powered tokens is driving optimism. 3. Macroeconomic Factors & Risk-On Sentiment Federal Reserve rate expectations have influenced risk asset investments. Traditional markets also show signs of recovery, adding confidence to crypto. How Is the Crypto Fear & Greed Index Calculated? The index is derived from six key market indicators, each with a weighted influence: Factor Weight (%) Impact on Market Sentiment Volatility 25% Lower volatility indicates more market stability. Market Momentum/Volume 25% Higher buying volume signals strong demand. Social Media Sentiment 15% Positive discussions boost confidence. Surveys (when available) 15% Reflects investor sentiment directly.…