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The fear and greed index is significant in determining the emotional state of investors to establish market valuation.
The crypto market has seen unprecedented volatility in the past few weeks, leading to extreme fear, with the values dropping to 19. However, CoinMarketCap has noted a shift in the market sentiment in the past 72 hours. The fear and greed index has surged to 53, a neutral zone value. This data is critical in establishing whether the market is undervalued(fear) or overvalued (greed).
Historically, the shift from fear to neutral comes before a period of steady market growth and bullish market rallies. This shift is evident in BTC’s rising prices while eyeing the psychological $100k mark.
The current value suggests that the market is not yet overvalued (greedy), has more potential for buying, and the bull rally is likely starting. With rising institutional interest and huge BTC demand from the U.S investors, the market is shifting to a healthier stage.
