Bitcoin’s market sentiment score, as indicated by the Bitcoin Fear and Greed Index, has reached 76 as of January 9, 2024, signaling extreme greed in the market. This is the highest level since 2021 when Bitcoin hit its peak. The index considers various factors like volatility, market momentum, social media sentiment, dominance, and trends
The crypto market has seen high volatility at the beginning of 2024, primarily influenced by the market sentiment toward spot Bitcoin ETFs (Exchange-Traded Funds). There was a significant sell-off in major cryptocurrencies on January 3rd, largely due to speculation that the U.S. Securities and Exchange Commission (SEC) might deny the approval of spot Bitcoin ETFs.
The anticipation of the SEC’s decision on spot Bitcoin ETFs has been a major driver of the recent surge in market sentiment. Bitcoin’s value increased notably, surpassing $46,000, in response to this news, marking a significant increase both weekly and yearly. This rally pushed Bitcoin to $47,000 on Monday, causing nearly $150 million worth of short liquidations in the past 24 hours.
However, there’s a high possibility of extreme volatility due to the pending ETF decisions. The potential approval of Bitcoin ETFs could lead to significant market movements and increased risks. Investors and traders are advised to be cautious and prepared for potential pullbacks.
In summary, the current market sentiment score of 76 for Bitcoin reflects the heightened anticipation and excitement surrounding the potential approval of Bitcoin ETFs. As the market awaits the SEC’s decision, investors are advised to remain vigilant and consider the potential risks associated with increased market volatility.
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This article was originally reported on Blockchain News.