Bitcoin Market Sentiment Reaches Levels Not Seen Since $69K, BlackRock’s Spot ETF Approval Excites Investors
The market sentiment for Bitcoin (BTC) has surged to levels not seen since its price reached $69,000 in mid-November 2021, according to the Crypto Fear & Greed Index. The index currently stands at 72 out of a possible 100, indicating a “greed” ranking. This marks a six-point increase from October 24 and a significant 16-point jump from its “neutral” rank of 50 on October 18.
This boost in market sentiment follows a wave of excitement sparked by the potential approval of BlackRock’s spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission. Investors anticipate that this ETF approval could have a positive impact on Bitcoin’s price and overall market sentiment.
On October 24, Bitcoin experienced its largest single-day rally in over a year, with a 14% gain that briefly pushed its price above the $35,000 mark. This rally further fueled the optimism surrounding the potential approval of BlackRock’s Bitcoin ETF.
The Crypto Fear & Greed Index calculates market sentiment by evaluating six key performance indicators: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%). These factors contribute to the daily score assigned to the market sentiment.
The last time the index reached a score of 72 was on November 14, 2021, just four days after BTC reached its all-time high of $69,044. This indicates that the current market sentiment is reminiscent of the bullish period during Bitcoin’s peak.
The Crypto Fear & Greed Index experienced its lowest-ever score of 7 on June 16, 2022, following the collapse of Do Kwon’s Terra Money ecosystem. This collapse had far-reaching consequences that impacted various crypto entities, including hedge fund Three Arrows Capital and crypto lender Voyager Digital.
In response to the growing excitement over spot ETFs, Galaxy Digital, a leading crypto investment firm, has predicted that the price of Bitcoin could potentially increase by more than 74% in the first year following a successful ETF approval. This forecast has further fueled investors’ optimism surrounding the future of Bitcoin’s price.
Overall, the current market sentiment for Bitcoin indicates a growing sense of greed among investors, driven by the potential approval of BlackRock’s spot Bitcoin ETF and positive price movements. Investors eagerly await further developments in the regulatory landscape and anticipate the impact these decisions will have on the cryptocurrency market.
Sources: [Crypto Fear & Greed Index](https://alternative.me), [CoinGecko](https://www.coingecko.com/en/coins/bitcoin), [Cointelegraph](https://cointelegraph.com/)
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