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The crypto market is buzzing with activities in the ongoing bull cycle. As typical of these times, extreme greed has gripped the market as investors, both old and new entrants, seek to profit from the uptick in the prices of different assets.
Is Bitcoin’s historic milestone fueling greed?
According to data, the Bitcoin Fear and Greed Index has entered the “Extreme Greed” zone with a value of 94.
For clarity, the index measures crypto market sentiment to gain insights into investors’ dispositions toward different assets. It is graded on a zero scale, implying “extreme fear,” to 100, indicating “extreme greed.”
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Thus, a score of 94 shows that market participants have become highly optimistic and confident about Bitcoin’s price movement. This ecstatic feeling usually triggers increased speculation of future prices and strong buying activity in anticipation.
As of this writing, Bitcoin was changing hands for $98,600.30, representing a 0.49% increase in the last 24 hours. With approximately $1,400 from hitting $100,000, many investors speculate and “wish” the leading digital currency would cross the historic milestone.
Market analysts say these speculations might have caused the huge spike in the fear and greed index. They emphasized that Bitcoin’s high price has made many investors accumulate the coin and other bullish assets. These investors fear they could miss out on further gains if further price appreciation occurs.
Calls for caution amid euphoria
However, market trend observers have highlighted that investors need to exercise caution when the index hits extreme greed as it currently exists. They maintain that this signals that the market has been overbought or overheated, increasing the possibility of price corrections.
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Interestingly, with Bitcoin’s price near the significant psychological level of $100,000, some believe that the score of 94 represents a bullish signal that might fuel further upticks.
While crypto trading lacks predictability, expert opinions agree that investors should exercise caution as they trade. Investors have been urged to keep a keen eye on market trends, especially a sharp reversal in BTC’s price.