With
the
price
of
bitcoin
now
well
over
$49,000
and
other
crypto
assets
rising,
traders
have
entered
a
period
of
“extreme
greed,”
according
to
a
well-known
index
measuring
market
sentiment.
The
Fear
&
Greed
Index,
published
by
data
source
alternative.me,
measures
market
enthusiasm
for
bitcoin
and
other
prominent
digital
assets.
The
last
time
the
index
reached
a
score
of
79
out
of
100
was
when
bitcoin
hit
its
all-time
high
around
$69,000
in
November
2021.
“When
investors
are
getting
too
greedy,
that
means
the
market
is
due
for
a
correction,”
said
alternative.me
on
its
website.
It’s
an
axiom
of
the
market
that
savvy
traders
prefer
buying
when
the
index
shows
extreme
fear,
and
that
they
become
more
cautious
when
greed
is
higher.
But,
of
course,
that
might
not
be
the
case.
The
index
has
been
routinely
above
70
(the
threshold
for
“greed”)
since
October
last
year.
It
fell
as
low
as
50
following
the
approval
of
bitcoin
ETFs
in
January,
which
initially
turned
out
to
be
a
“sell-the-news”
event.
Bitcoin
has
more
than
doubled
in
price
in
the
last
12
months.
A
year
ago
today,
one
coin
was
worth
as
little
as
$21,000
and
yesterday
the
price
briefly
rose
above
$50,000.
The
price
has
retreated
a
hair
to
$49,400
at
press
time.