Fear and greed

The Bitcoin Fear & Greed index registered its largest drop in years when it sank last week from 74 to 50 – and then promptly reversed to 69 in a day.

The index is based on volatility, momentum, bitcoin dominance (what percentage of the total crypto market cap is owned by bitcoin), social media and trends. We are currently in a bull market so a drop to “neutral” is seen by many as a time to buy.

And so it turned out. The bitcoin price flirted with $91k before rebounding above $94k.

The fact that BTC retreated below $100k in early January was seen by some as a sign of weakness. Others see any dips at these levels as an opportunity to buy. Crypto analyst Mikybull sees the potential for a V-shaped recovery from here. In other words, the bull market has yet to run its course. We’re inclined to agree.