Despite the price rise, the Fear and Greed index represents confidence in Bitcoin

Bitcoin turns 13, attains a new all-time high hash rate

Though there is a significant surge in the exchange of crypto assets across the globe the problems associated with cryptocurrencies are no less. The series of issues that are associated with cryptocurrencies are price volatility and lack of inherent value, lack of regulation and legislation in most countries and crucial issues are incidents of money laundering and security implications.

Even after these problems, there is an exemplified rise in confidence in cryptocurrencies, this can be proved through a recent index published by Coinstats Explorer in the name of Fear and Greed index.

Bitcoin has sustained a bullish market sentiment. As highlighted by the index, Bitcoin investors have shown a high level of optimism. It is remarkable to note here that there is a hopeful attitude seen across the investors even after the recent rise in price and volatility.

According to the index, the point range is 0 to 100 as per the results the current level is 64. There are a variety of factors including social media and Google trends to measure the mood of Bitcoin. As per the index, a score above 55 is greed and below 45 is fear and currently the level points at greed.

The Fear and Greed Index is a tool used to measure the emotions and attitudes of traders towards buying and selling assets, including crypto assets. It provides a simple way to gauge the sentiment of the market.

In the year 2023, Bitcoin has sustained a constant surge and even in the previous two results of the index the trend represents greed. It is important to note here that price volatility is an extremely important issue and there is a need for an inherent mechanism to counter the problem to a certain extent. Here, legislation across the countries, backed by sovereign currency can be an easy way forward.

Investors in Bitcoin and other crypto assets are keeping an eye on the developments happening across the globe whether it is legislation that passed in the European Union that regulated cryptocurrencies or the fall of FTX these incidents will have significant repercussions over the investments in crypto assets.

Related Posts