Crypto Fear & Greed Index surges, flips to ‘Greed’ for first time in three months

The Crypto Fear & Greed Index has entered the ‘Greed’ zone for the first time in about three months.

According to Alternative, a crypto analytics firm, the index stood at 61 as of the day, moving into the Greed range. That is up 13 points from the previous day (48), when it was in the ‘Neutral’ zone. The Crypto Fear & Greed Index is one of the indicators used to gauge investor sentiment.

This marks the first time the index has reached the Greed range since around October last year. Cointelegraph said, “In October last year, $19 billion flowed out of the crypto market (amid a wave of large-scale liquidations), freezing sentiment,” adding that “the index has recently started to climb in step with Bitcoin’s rally.”

Bitcoin has shown a more pronounced recovery since the start of the year, briefly reclaiming the $97,000 level during the day. It is the first time Bitcoin has been above $97,000 since around November last year.

On-chain analytics firm Santiment also said that the recent drop in Bitcoin holdings on exchanges to 1.18 million coins—the lowest level in seven months—helped underpin the latest price rebound. Typically, declining exchange balances are seen as a sign that selling pressure has eased.