Bitcoin remains above the $21,000 mark on Tuesday and is attracting bullish sentiments in the indices. The markets are in consolidation mode and could head further this week delivering decent returns to investors. If the markets maintain the positive momentum, BTC could touch $25,000 in the next leg. The CPI data-induced rally has brought a fresh perspective into the markets as sentiments are turning positive.
Also Read: Why Is the Crypto Market Up Today?
Bitcoin Fear & Greed Index Comes Out Of ‘Fear’
For the first time in nine months, the Bitcoin ‘Fear & Greed Index‘ came out of ‘Fear’ as BTC climbed above $20,000. The Fear & Greed Index has reached ‘neutral’ at 52 giving hopes that investors seem to be bullish.
The Fear & Greed Index is an analysis of the combined sentiments of the markets that change every day. The Index highlights investor sentiments and their decision-making abilities.
Also Read: When is the Best Time to Buy Bitcoin? Wall Street Analysts Explain
The last time the Index reached 53 was on April 5, 2022, as the Russia-Ukraine war sent the markets tumbling. A month later, the TerraUST and LUNA crash added ‘extreme fear’ never to return to normalcy for the next nine months. The Terra impact cast a stormy cloud as leading crypto lenders collapsed one after the other last year.
The statistics are taken based on the current trading volume, general volatility, and other multiple factors. The main idea behind creating such an index is to make people aware of the market sentiments. The index mostly represents the reader’s mind and depicts a whole bunch of investors under one umbrella.
Read here to know more details about the Fear & Greed Index.
Also Read: Bitcoin: What to Expect From the Markets In January 2023?
At press time, Bitcoin is trading at $21,166 and is up 0.6% in the 24 hours day trade. BTC is down 69.3% from its all-time high of $69,044, which it reached in November 2021.