Crypto Sentiment Indicator Signals ‘Extreme Greed’ After BTC Soars to All-Time High of $76K On Nov. 7, the Crypto Fear & Greed Index – a metric that gauges crypto investors’ sentiment – recorded an “Extreme Greed” level, moments after BTC rose above $76,000. Increased market confidence, following the victory of Donald Trump in the United States presidential elections, creates expectations of lighter regulations and friendly attitudes toward digital assets.
Extremely High Levels of Crypto Sentiment May Indicate Market Corrections
The Crypto Fear and Greed Index, which operates on a 0 to 100 scale, reflects the attitude of investors toward Bitcoin in particular. While readings between 0 and 24 are indicative of “Extreme Fear”-a perfect indication that the market is undervalued due to negative sentiment-higher readings of 75 to 100 point to signs of “Extreme Greed.” This usually suggests heavy buying with higher risk for a correction to occur as prices reach their possible highs.
The index currently is at a 3-month high, but analysts warn that such strong optimism may be fleeting as investors could settle for more conservative gains that would readjust prices.
Trump’s Victory Means Lighter Regulations, Crypto Market Sentiment Reacts
This rise in optimism partially emanates from the perceived pro-crypto stance by investors in Trump. The expectation, especially with the latter’s win, is fewer regulatory constraints on crypto markets and more support, hence creating optimism and a probable rally toward the $100,000 mark for Bitcoin.
The CEO of Concordium, Boris Bohrer-Bilowitzki, is of the opinion that Trump’s election might have a positive impact on the climate for digital assets globally. He underlines that Trump is a good friend of Elon Musk, and given that fact, Musk may well have something to say in the new administration, which would also be crypto-friendly, pushing the industry further.
Putting this all together, Trump getting elected, Musk weighing in, and “Extreme Greed” at an all-time high could be an indication of short-term market activity. But according to experts, this is a cautionary signal as this type of extreme optimism has often preceded market corrections.
