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Data shows the Bitcoin market sentiment has returned to neutral today for the first time in September.
Bitcoin Fear & Greed Index Has Surged Into Neutral Territory
The “fear and greed index” is an indicator that tells us about the general sentiment among investors in the Bitcoin and broader cryptocurrency market. This metric uses a numeric scale from zero to hundred to represent this sentiment.
According to its creator, Alternative, the index’s value is based on these factors: volatility, trading volume, market momentum, social media sentiment, market cap dominance, and Google Trends.
When the value of this metric is 54 or greater, it means that the investors share a sentiment of greed right now. On the other hand, a value of 47 or lower implies the overall market mentality is that of fear.
The in-between region implies a state of neutrality in the sector, where the traders are evenly split on the cryptocurrency. Now, here is what the value of the Bitcoin fear & greed index looks like currently:
Looks like the value of the metric is 47 at the moment | Source: Alternative
The BTC fear & greed index has a value of 47 right now, meaning the market sentiment is just inside neutral territory. Until yesterday, the investors had been fearful since the start of the month, as the chart below displays.
The value of the metric has slightly gone up during the past day | Source: Alternative
The last time the index’s value was higher was at the end of August, when the news of the Grayscale victory against the US Securities and Exchange Commission (SEC) uplifted the mood in the market.
The resulting price surge and the sentiment improvement were pretty temporary, as both had returned to baseline with the start of this month.
Interestingly, while BTC had observed a strong surge above the $27,000 mark at the start of the week, the sentiment failed to see any significant uptick. This may be because the market is more apprehensive of any recovery rallies right now, perhaps because of what happened with the Grayscale surge.
As the asset has managed to stay above the $27,000 level in the past couple of days, the holders may be starting to believe, which is why the sentiment has returned to neutral today.
Despite the improvement, they are still far from embracing the rally, as the Bitcoin fear and greed index is still a notable distance away from the greed territory.
It remains to be seen how the Bitcoin market sentiment continues to develop in the coming days. Further uplift in the index could be a positive sign, as it would mean that hesitancy related to the rally is going away from the investors’ minds.
Bitcoin has remained strong above the $27,000 level, but the asset is starting to stagnate, as it has been unable to find any notable moves above the mark.
BTC is currently floating around the $27,100 level | Source: BTCUSD on TradingView
Featured image from Norman Wozny on Unsplash.com, charts from TradingView.com, Alternative.me