Crypto Market Sentiment Approaches November 2021 Highs

By: Eva Baxter

The Crypto Fear & Greed Index, which signals market sentiment, has returned to the peak points of Bitcoin's all-time high in November 2021. This indicator coupled with an overbought reading on the Relative Strength Index (RSI) has led to speculation about a potential pause in Bitcoin's bull run.

The index is now at 72, indicating 'greed', showing a 6-point rise since 24th October and a substantial 16-point jump from its 'neutral' score of 50 as of 18th October. This improvement in market sentiment occurs concurrently with the high anticipation of BlackRock's spot Bitcoin ETF approval by the U.S Securities and Exchange Commission.

The index gathers data from multiple key market performance indicators including volatility, market momentum and volume, social media trends, Bitcoin's dominance, and surveys. The last instance it reached 72 was on 14th November 2021, just four days after Bitcoin marked its all-time high of $69,044, according to data from CoinGecko.

The surge in market sentiment is expected to be followed by a bullish market, with Galaxy Digital suggesting an increase of over 74% in Bitcoin's price post the successful approval of a spot ETF.