- The Crypto Fear and Greed Index turned “Greedy” on Tuesday.
- The last time the index showed such a value was in November 2021.
- Bitcoin (BTC) is trading at around $28,000.
Just a couple of weeks ago the crypto industry was on the brink of collapse following multiple crypto-friendly bank failures and anti-crypto talk from U.S. regulators.
However, with the U.S. banking system seemingly surviving one of the worst crises in the last years, crypto investors are starting to feel bullish – as bullish as at the peak of the last bull market.
Crypto Fear and Greed Index Soars
Crypto investors’ bullishness is evident in the way the classic Crypto Fear and Greed Index has turned “Greedy.” The index is currently at 68, which indicates that investors are pouring money into crypto.
68 is the largest index value since the peak of the last crypto bull run. In November 2021, the index value soared over 80 when bitcoin (BTC) hit $69,000 and the whole crypto market reached the $3 trillion mark.
Today BTC is trading at around $28,000, according to data from CoinGecko. That’s 35% higher than in the last seven days.
Ethereum (ETH) is also currently trading substantially higher than last week. ETH is now worth $1,800, according to CoinGecko.
The total crypto market cap currently stands at $1.22 trillion. That’s at least a few hundred billion more than when Silvergate, Silicon Valley Bank, and Signature Bank – all three crypto-friendly banks – were shut down in the span of a week and caused widespread panic among crypto investors.
Bitcoin, ether, and the whole crypto market significantly dumped on the news of the cascading bank failures but then quickly rebounded after U.S. regulators and the Federal Reserve guaranteed that all depositors at the mentioned banks will be fully covered.
One of those depositors was Circle, the issuer of USDC that had over $3 billion stuck at Silicon Valley Bank. USDC depegged and fell to as low as $0.87 on the news but later regained its peg.
On the Flipside
- The Fear and Greed Index can quickly turn to “Fear” as inflation has yet to subside around the world and central banks continue to raise interest rates.
Why You Should Care
The Fear and Greed Index is a good way to measure the exact sentiment of crypto investors. However, investors should always do their own research before deciding where to invest, since narratives and sentiment change quickly in crypto.
Read more about bitcoin price action:
Bitcoin Breaks $28K as Ethereum Eyes $2K Amid Banking Crisis
Read more about Circle’s efforts to expand in Europe:
Circle Applies for Crypto License in France Days After USDC Depeg
Sourced from dailycoin.com.
Written by on 2023-03-21 19:45:00.