Fear & Greed Index Falls to Lowest Level Since October
The Crypto Fear & Greed Index, which measures the sentiment of the Bitcoin and broader crypto market, experienced a steep decline of 19 points in just one day, reaching its lowest score since October 14th.
This sudden drop down to a score of 50 out of 100 is one of the largest daily decreases observed in the index over the past few years.
As a result, market sentiment has shifted from the “Extreme Greed” and “Greed” zones to the “Neutral” zone after three months.
The decline comes alongside a drop in Bitcoin’s price below $92,000 on January 9th, following reports that the US Department of Justice had been given approval to sell $6.5 billion worth of Bitcoin seized from Silk Road. However, no sales have been made thus far.
In addition, analysts believe that the anticipation of the US Federal Reserve tightening monetary policies in 2025 may have contributed to the decline in market sentiment, potentially impacting Bitcoin and the wider crypto market.
The recent increase in Treasury yields and a stronger US dollar have also played a role in keeping Bitcoin’s price below $100,000.
