- Fear and greed index shows the Bitcoin market is less greedy at 66.
- This probably follows the recent drop in the market value of BTC.
The Bitcoin market has been in an “extremely greedy” state for the majority of days in 2021. Most BTC traders and investors probably got more bullish following the exponential increases in the market value of the cryptocurrency from the $20,000 level to over $50,000. However, after BTC reached an all-time high (ATH) above $60,000, it has struggled to reclaim that mark.
Yesterday, Bitcoin dropped from as high as $58,471 to the current price at $54,700 during press time.
All these coincided with the BTC fear and greed index, as the market is currently less greedy than it was yesterday.
F&G index shows the Bitcoin market is less greedy
The fear and greed index reflects the behavioral state of the Bitcoin market. There tend to be more greedy investors/traders in the market when the Bitcoin price skyrockets. When in extreme greed (i.e., 100), the market is likely due for a correction, while extreme fear (i.e., 0) indicates buying opportunity.
Judging by this, the Bitcoin market is currently less greedy, as the fear and greed index clicked “66.” This probably follows the recent decline in BTC price yesterday. As of Monday, when BTC traded above $58,000, the greed rate was 70 to 71 in the past week, and 91 in the past month. The declining greed index shows the market is gradually returning to neutral.
Hence, Bitcoin price is likely to stabilize soon or face slightly more correction.
Bears in charge of the crypto market
The crypto market, in general, is dipping amid the decreasing price of BTC. At the moment, BTC market capitalization has reduced to $1.03 trillion, while the overall crypto market is down by nearly five percent to about $1.72 trillion. Major alternative coins are down as follows over the past 24 hours, Ether (-4.8 percent), Binance Coin (2.7 percent), Cardano (3.7 percent), Polkadot (4.4 percent), and so on.