The Crypto Greed and Fear Index, a tool that measures the market sentiment towards Bitcoin and other cryptocurrencies, reached the highest "Extreme Greed" level in nearly seven months on November 10, when the price of Bitcoin surpassed $81,000.
Specifically, this index reached 78 points on a scale of 100, falling within the "Extreme Greed" range (from 75 to 100), the highest level since April 12 when Bitcoin was trading around $70,000 and the Bitcoin halving event in 2024 is approaching.
The Crypto Greed and Fear Index is calculated based on market volatility (25%), trading volume (25%), social media sentiment (15%), BTCD (10%), and market trends (10%), in order to reflect the overall market sentiment. Previously, this index also included survey data (15%), but this component has been temporarily suspended.
Bitcoin has been in the "Extreme Greed" zone on October 31, fluctuating between 70 and 78 throughout the past week as Donald Trump, the Republican candidate, won the US presidential election.
According to data from CoinGecko, Bitcoin has surged strongly by 6.15%, reaching a new all-time high of $81,480 on November 10, but later adjusted slightly to $80,463 at the time of writing. The Crypto Fear & Greed Index then dropped to 76 on November 11.
However, industry analysts predict that Bitcoin could continue its strong growth trend before Trump officially takes office on January 20, 2025.
In addition, the recovery in Bitcoin's price has sparked the interest of many retail investors, as evidenced by the significant increase in Google searches for the keyword "Bitcoin" in the past week.
Data from Google Trends shows that the search interest for Bitcoin peaked at 100 overnight before dropping to 48 at the time of writing.
An important factor supporting this optimistic sentiment is Trump's victory and the increase in the number of pro-cryptocurrency politicians in the US Senate and House of Representatives for the 2025-2029 term. The market also expects that if Trump fulfills his commitment to dismiss Gary Gensler from his position as SEC Chairman, investors may benefit from a more flexible Securities and Exchange Commission.
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Annie
According to Cointelegraph
