The Fear and Greed Index in the cryptocurrency world, a key indicator of investor sentiment, has dropped to 48 points. This decline occurred against the backdrop of the ongoing fall of Bitcoin following the approval of spot exchange-traded funds (ETFs) in the USA. As of January 24th, the index reached its 100-day low, falling by two points compared to the previous day and by 15 points compared to last week, when it indicated 'Greed'.

This drop to 48 points is the lowest since October 16, 2023, when the index was at 47 and Bitcoin was trading just above $28,500. The annual chart of the index shows an improvement in sentiment prior to the approval of Bitcoin ETFs and a subsequent fall after the event.

The index analyzes market sentiment using data from six key indicators: volatility, market momentum and volume, social media activity, surveys, Bitcoin dominance, and market trends. Bitcoin reached its two-year high of nearly $47,000 on January 8th, but after the approval of spot Bitcoin ETFs in the USA, its price fell to below $40,000.

Particularly noteworthy is the situation with the Grayscale Bitcoin Trust (GBTC), where more than $2 billion in outflows occurred following its conversion to an ETF, contributing to a net outflow of funds from 10 spot Bitcoin ETFs. The index shows that market sentiment remained in the 'Greed' zone since the end of October, in anticipation of ETF approvals, reaching 76 points on January 1st, the highest since it hit 77 points on November 11, 2021, the day after Bitcoin's record surge to over $69,000.