Fear and Greed Index at highest point since July

As cryptocurrencies rise, investors are becoming increasingly optimistic. But what does this "greed" mean for Bitcoin, Ethereum and other coins?

The Fear & Greed Index is considered an important indicator of market sentiment. Since early August, the index was mainly in the fearful or neutral zone. However, after the recent increases in cryptocurrency prices, there now seems to be a trend reversal.

Retrieved from currently the index stands at 73 points, indicating that greed has fully returned. One possible explanation is that "Uptober" is traditionally seen as a strong month for crypto, fueling investors' hopes for another bull run.

At the time of writing, Bitcoin stands at $68,572/€63.192. To reach a new record, the price would need to rise about another eight percent. The Fear & Greed Index is based on several factors, including trading volume, volatility, trends on social media and market dominance. While it is a useful tool, it does not provide a definitive buy or sell signal for crypto investments.

The last time the index was this high was in late July. A sharp price correction followed shortly thereafter, with Bitcoin dropping below $55,000. Still, a high does not always mean the market is overheating. In December 2023, Bitcoin hovered between $38,000 and $44,000, while the index regularly read above 70 points. Those who bought BTC then will not regret it now.