Bitcoin (BTC) market sentiment has returned to levels not seen since its price reached $69,000 in mid-November 2021, according to the Crypto Fear & Greed Index.
The index is now at 72 out of a total possible score of 100, placing it within the “greed” ranking — a six-point increase from Oct. 24 and a 16-point bounce from its 50-point “neutral” rank on Oct. 18.
The strengthening market sentiment follows a wave of excitement that BlackRock’s spot Bitcoin exchange-traded fund (ETF) could be inching toward approval by the United States Securities and Exchange Commission.
On Oct. 24, Bitcoin staged its largest single-day rally in over a year, recording a 14% daily gain as its price briefly moved above the $35,000 mark.
The index gathers and weighs data from six market key performance indicators — volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%) and trends (10%) — to score market sentiment each day.
Nov. 14, 2021, was the last time the index reached a score of 72, just four days after BTC notched its all-time high of $69,044 on Nov. 10, 2021, according to CoinGecko data.
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The index recorded its lowest-ever score of 7 on June 16, 2022, after the collapse of Do Kwon’s Terra ecosystem.
The fallout from the Terra collapse triggered a cascade of price-dampening effects, which later claimed hedge fund Three Arrows Capital and crypto lender Voyager Digital as casualties, among others.
Following the wave of excitement for spot ETFs, crypto investment firm Galaxy Digital has predicted that the price of Bitcoin could increase by more than 74% in the first year following a successful approval.
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Additional reporting by Tom Mitchelhill.