Bulletpoints:
• The Bitcoin Fear & Greed Index has moved out of the ‚fear‘ zone and into ’neutral‘ for the first time since April 2022
• Bitcoin reached a score of 52 on the index as it pushed over $21,000
• Google search traffic for the term ‚Bitcoin‘ is still at its lowest since December 2020
Bitcoin is showing signs of a positive market sentiment as the Bitcoin Fear & Greed Index (FGI) moves away from the ‚fear‘ zone and into ’neutral‘ for the first time in almost a year. This comes as Bitcoin has reached a score of 52 on the index and has pushed past the $21,000 mark.
The FGI started the year in the ‚extreme fear‘ zone, indicating that bearish sentiment had control of the market at the start of January. However, as Bitcoin rallied from the $15,600 to $17,200 range held throughout November and December, the FGI moved away from extreme fear. This was due to Bitcoin going into free fall following the collapse of FTX. Fortunately, the digital asset appears to have recovered to pre-FTX-collapse levels within the past week, breaking resistance and pushing back above $20,000.
Despite the movement away from ‚fear,‘ other global metrics have not shown a similar bullish trend. Google search traffic for the term ‚Bitcoin‘ is still at its lowest since December 2020. Interest by region shows El Salvador as the most interested in Bitcoin by some margin, with Nigeria following behind before a large gap before European countries such as Netherlands, Switzerland, and the United Kingdom.
The FGI is an important metric to watch, as it can help investors understand the sentiment of the market and make more informed decisions when trading Bitcoin. While the index has moved out of ‚fear‘ and into ’neutral,‘ it is important to stay up to date with market sentiment, as it is constantly changing. For now, Bitcoin seems to be in a positive trend, but investors should remain vigilant and watch for any changes in the market.
