Crypto “Greed Index” Hits 7-Month High As Bitcoin Surges Past $81,000
The Crypto Fear & Greed Index, a widely followed metric that gauges market sentiment for Bitcoin (BTC) and other cryptocurrencies, reached its highest level of ‘greed’ in nearly seven months on November 10. This milestone was achieved as BTC surged past $81,000.
A Brief Overview of the Crypto Fear & Greed Index
The Crypto Fear & Greed Index is a composite metric that provides insights into market sentiment by analyzing various factors such as market volatility, trading volume, social media sentiment, Bitcoin’s dominance, and trends. The index produces a score based on these inputs, with each factor contributing to the overall score.
Market Sentiment Reaches Extreme Greed Zone
On November 10, the Crypto Fear & Greed Index scored an impressive 78 out of 100, firmly placing it in the ‘Extreme Greed’ zone. This level of greed has not been seen since April 12, when BTC was trading around $70,000 and the 2024 halving was fast approaching.
BTC’s Price Surge and Market Sentiment
As of this writing, Bitcoin’s price has retreated slightly from its all-time high of $81,358, which it reached on November 10. However, the Crypto Fear & Greed Index score has also regressed to 76 out of 100 on November 11.
Market Analysts Anticipate Further Upside for BTC
Industry analysts believe that Bitcoin’s price is likely to see more upside before Republican Donald Trump takes office on January 20, 2025. The anticipation of a potentially more accommodating Securities and Exchange Commission (SEC) under Trump’s administration has contributed to the optimism.
Change in Crypto Fear & Greed Index Score Over the Last 12 Months
| Date | Score |
| — | — |
| Nov 10, 2024 | 78 |
| Oct 31, 2024 | 75 |
| Aug 1, 2024 | 30 |
| May 1, 2023 | 10 |
| Jan 1, 2022 | 20 |
The Impact of Trump’s Victory on Market Sentiment
Trump’s victory and a larger representation of pro-crypto politicians winning seats in the US Senate and House of Representatives for the 2025-2029 term have fueled bullish sentiment. Market participants may also benefit from a potentially more accommodating SEC under Trump’s administration.
Potential Changes at the SEC
SEC Commissioner Mark Uyeda, who has criticized the SEC’s regulation by enforcement regime, could be next in line to replace Gary Gensler as the SEC Chair. Crypto attorney Jake Chervinsky suggests that Uyeda’s appointment could lead to a more favorable regulatory environment for the cryptocurrency industry.
Google Search Interest for Bitcoin on the Rise
The recent price pump has woken up more retail investors, with Google search interest for ‘Bitcoin’ rising substantially over the last week. However, it still lags behind the peak search volumes reached in late May 2021, when all-time search volumes were at their highest.
Bullish Sentiment Continues to Grow
The current bullish sentiment is driven by a combination of factors, including Trump’s victory and the anticipation of a more favorable regulatory environment. As market participants continue to anticipate further upside for Bitcoin, it will be interesting to see how the Crypto Fear & Greed Index evolves in the coming weeks.