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Bitcoin has experienced a 13.7% decline over the past 12 days, bringing the Crypto Fear and Greed Index to its lowest point since October 15.
Crypto Fear and Greed Index: Signs of Waning Greed
As of December 30, the Fear and Greed Index remains in the greed zone at 65 points but marks its lowest level since mid-October. Bitcoin is currently trading at around $93,000, according to CoinGecko, reflecting the recent decline. This downturn has driven investors towards stablecoins and heightened bearish sentiment in the market.
Market Sentiment and Historical Performance
During November and December, market sentiment was notably positive, fueled by Donald Trump’s re-election as U.S. president and the rise of crypto-friendly politicians in Congress. The index frequently remained above 70 during this period, peaking at 94 on November 22.
The Fear and Greed Index is calculated using factors like Google Trends data, surveys, market momentum, dominance, social media interactions, and volatility, serving as a vital tool for gauging investor sentiment.
Bitcoin’s Long-Term Success
Despite recent challenges, Bitcoin has cemented its place as the best-performing asset of the last decade. A December 13 report from CoinGecko researcher Prem Reginald highlights Bitcoin’s unparalleled 26,000% outperformance over traditional assets.
In 2024 alone, Bitcoin delivered a remarkable 129% return, making it the year’s top-performing asset. Gold followed with a 32.2% return, and the S&P 500 trailed at 28.3%.
Bitcoin’s recent volatility underscores the unpredictable nature of the crypto market. Investors are advised to exercise caution and prepare for potential fluctuations as market dynamics continue to evolve.
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