The Crypto Fear & Greed Index has surged to 76, moving from the "Greed" zone to "Extreme Greed," according to Alternative.me.
What is the Fear & Greed Index?
The Crypto Fear & Greed Index measures market sentiment, ranging from 0 (Extreme Fear) to 100 (Extreme Greed). With the index at 76, the market is in "Extreme Greed" territory, often indicating a potential overheating phase.
Why Has Market Sentiment Shifted to Extreme Greed?
Key factors driving the sentiment surge include rising institutional demand for Bitcoin ETFs, bullish price action for Bitcoin and major altcoins, improved macroeconomic conditions, and increased retail participation in crypto discussions on social media.
Is ‘Extreme Greed’ a Warning Sign?
While extreme greed can signal strong bullish sentiment, it is also a historical indicator of potential corrections. Greed peaks often precede market pullbacks.
The Crypto Fear & Greed Index has climbed to 76, signaling Extreme Greed as investor sentiment strengthens. While this suggests a bullish market, traders should stay vigilant as past instances of extreme greed have led to corrections.
