The Crypto Fear & Greed Index has recently fallen to “neutral,” a level last observed in October 2023. This shift occurs just days following the landmark approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.
According to the index, Bitcoin’s market sentiment is currently at 52 out of 100, the lowest since Oct. 19, 2023, when its average daily trading price was around $31,000.
This change happens less than a week after the Crypto Fear & Greed Index briefly reached an “extreme greed” rating of 76 in anticipation of the approval of spot Bitcoin ETFs.
The index compiles and analyzes data from six key market performance indicators to assess daily market sentiment: volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin dominance (10%), and trends (10%).
Following the U.S. Securities and Exchange Commission’s green light for spot Bitcoin ETFs, Bitcoin’s price soared to $49,000 in the subsequent 24 hours. However, by Jan. 12, it had fallen to as low as $41,500 as traders took profits.
Bitcoin has since stabilized and is currently trading at approximately $42,200, as per TradingView data.
The launch of spot Bitcoin ETFs has been marred by uncertainty, with mixed data on their performance and scarce details on the specifics of these new investment options.
Google Trends data reveals a 1,100% spike in searches for “Why is Bitcoin dropping?” as market players seek explanations for the recent fluctuations in Bitcoin’s price.