Despite experiencing a slight increase of 2.16% against the U.S. dollar in the past 24 hours, the cryptocurrency market continues to exhibit a strong sentiment of “extreme greed,” according to the Crypto Fear and Greed Index (CFGI).
Despite a recent dip in bitcoin prices, the CFGI, hosted on alternative.me, has maintained a score of 78, indicating “extreme greed.” Last Friday, the score even reached 79, signifying a state of “extreme greed” according to the fear and greed index. Over the past month, the CFGI score has fluctuated between “greed” and “extreme greed,” with the figure standing at 81, or “extreme greed,” 30 days ago.
As of 8:00 a.m. Eastern Time on Sunday, April 7, 2024, bitcoin’s price is currently at $69,345 per unit.
The CFGI evaluates market sentiment by analyzing indicators such as volatility, market momentum, volume, and social media trends. Typically, if the CFGI detects high buying activity in an optimistic market, it interprets this behavior as “overly greedy.” Despite the CFGI indicating levels of “greed,” bitcoin’s market performance has seen a 1.4% decrease against the U.S. dollar this week.
Presently, bitcoin is valued at 5.3% below its peak of $73,794 per coin, which was reached just 23 days ago on March 14, 2024. In the derivatives market, there is an equilibrium with 52.23% of positions being long and 47.77% being short against the leading cryptocurrency. Over the past 24 hours, approximately $28.02 million in bitcoin short positions were liquidated. QCP Capital reported on April 5 that there has been a significant increase in the sale of perpetual futures contracts set to expire in June for both bitcoin and ethereum.
“This has resulted in the compression of the front end and the flattening of the whole forward curve to 15-17% across the board,” added QCP.
What are your thoughts on the current levels of the crypto fear and greed index? Feel free to share your opinions in the comments section below.
