The Fear and Greed index has been updated by its creators. Its value, which oscillates between 0 and 100, is now 76. This news comes against a backdrop of good news for the sector as a whole. The market, which had peaked in May 2021, had been in a period of uncertainty for 3 months. But since the beginning of August 2021, a bullish wind seems to be blowing through the crypto-currency charts.
The fear and greed index is back in the green after three long months of hesitation. The fear and greed index represents the trend in the cryptocurrency market. When fear takes over, there is panic. And the price drops. When greed is greater than fear, people buy. And the price goes up.
The fear and greed index takes different factors into account. The price of a crypto like Bitcoin weighs heavily in the balance. But this is not a simple analysis of the price of crypto. In reality, you have to look at the price in relation to its previous levels, in relation to its evolution, the speed with which it evolves.
It is an index that goes from 0 to 100 – from the most intense fear to the most devouring greed. The index, therefore, allows us to perceive the sentiment of traders. By measuring the average fear and greed of the crypto market, we know the reality behind a movement. The bullish movement of the last few days could have been just a bull trap, an artificial market rise. But the evolution of the index confirms the solidity of this trend. An index that is leaning towards greed in addition to such a rise makes this move the beginning of a bullish period that could last for several months.
So that’s why the release of the index on Monday, August 16, 2021, got the whole community to react. Numerous tweets greeted the release of the result, which shows 76 out of 100. This good news comes in a context where the market seems unstoppable. Price predictions have picked up steam, with the more measured analysts talking about a $100,000 Bitcoin.
The reason why predictions are so optimistic also comes from the general evolution of the crypto-currency market. Bitcoin has certainly seen a considerable increase in recent weeks. But it’s the altcoins that have lifted the market to its May 2021 record levels.
The explosion of major altcoins, such as Ethereum ETH, Cardano ADA, and Binance Coin BNB have managed to push the market cap – market capitalization – of all cryptocurrencies to the $2 trillion mark. This historic level was only reached during the previous All-Time High in May 2021. At that time, however, Bitcoin was worth $63,000. Today, it is worth “only” 46,000. So it is the other cryptocurrencies, the Alts, that represent this fantastic rise that is taking place before our dazzled eyes.
As a reminder, Bitcoin’s dominance in the market is currently 43%. This is a relatively low value, with the lowest dominance being 33%, a score reached in January 2018, when the crypto bubble burst. Meanwhile, Ethereum’s dominance is almost 20%, and BNB and Cardano ADA are each at around 3%.
Ethereum hit its highest point in May, with a record high set at $4176. After that, a severe fall had taken it down to the $1700s, a drop of almost 60%. But it has already recovered strongly from this eventful period, as it is currently at $3,200, with a 30-day bull run that has seen it rise by 100%.
The Cardano ADA has also been blowing up. Its All-Time High, at $2.36 saw a 57% correction. But since its move to $1.03, it seems to have recovered. In 25 days, it has regained 113% of its value and is currently trading at $2.22. A rise that has made it the 3rd crypto on the podium, behind Ethereum and Bitcoin.