What caused the Fear and Greed Index to drop to 50

user avatar

by Giorgi Kostiuk

2 years ago

The Crypto Fear and Greed Index, measuring market sentiment, has dropped 19 points in a day, reaching its lowest score since October 14.

Drop in index and influencing factors

This drop is one of the index's biggest daily declines over the last few years, causing a shift in market sentiment from 'Extreme Greed' to neutral after three months of optimism.

Role of Fed and stronger US dollar

Bitcoin's price fell below $92,000 due to expectations of the US Federal Reserve tightening monetary policy in 2025, impacting Bitcoin and the broader market. Rising treasury yields and a strengthening US dollar have also kept Bitcoin from surpassing $100,000 in recent weeks.

Insights on Bitcoin ETF positions

US spot Bitcoin ETFs experienced their second-largest outflow of nearly $570 million on January 8, signaling a potential further retrace, explained by 10x Research’s founder Markus Thielen.

The recent Fear and Greed Index scores reflect changing sentiment in the cryptocurrency market, influenced by macroeconomic factors such as Fed policy and dollar dynamics.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Soluna and Bitdeer Expand Bitcoin Mining Partnership

Soluna and Bitdeer are increasing their Bitcoin mining capacity at Project Kati 1 in South Texas, adding approximately 7 MW of mining equipment to reach a total of 35 MW, with completion expected in November 2023.

user avatarSatoshi Nakamura

Microsoft Stock Surpasses 500 Mark Amid Analyst Buy Ratings

Microsoft's stock has climbed above the 500 level, opening at 509 during Tuesday's trading session. Analysts have given MSFT a buy rating, with predictions suggesting it could reach above 600.

user avatarJesper Sørensen

Oracle Integrates with Swift's Blockchain for Enhanced Banking Payments

Oracle announced a significant integration with Swift's blockchain ledger to facilitate tokenized deposit payments for banks.

user avatarRajesh Kumar

TRON DAO Rings Closing Bell at Cboe for TRXS Listing

TRON DAO rings the closing bell at Cboe Global Markets to celebrate the listing of TRXS, an exchange-traded product linked to TRX.

user avatarLucas Weissmann

MEXC Launches 'WE SEE YOU' Campaign to Highlight Individual Traders

MEXC has launched a new brand identity focused on the philosophy 'WE SEE YOU', emphasizing the importance of individual traders behind accounts.

user avatarFilippo Romano

Citi and Coinbase Enhance Partnership for Stablecoin Payments

Citi and Coinbase have expanded their partnership to facilitate stablecoin payments for corporate clients, allowing seamless transactions between traditional and digital currencies.

user avatarEmily Carter

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.