Data shows that Bitcoin sentiment has been on the edge of extreme greed recently, but investors haven\u2019t yet looked ready to embrace the hype.<\/p>\n
The \u201cFear & Greed Index<\/a>\u201d refers to an indicator created by Alternative<\/a> that tells us about the general sentiment among the investors in the Bitcoin and the wider cryptocurrency sector.<\/p>\n This index calculates the sentiment as a number between zero and a hundred. This calculation uses data from the following five factors: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends.<\/p>\n When the value of this metric is greater than 53, it means the investors share a sentiment of greed. On the other hand, under 47 suggests the presence of fear in the market. The territory in between these two thresholds corresponds to a net-neutral mentality.<\/p>\n Now, here is what the Bitcoin Fear & Greed Index is like right now:<\/p>\n\n As is visible above, the latest value of the Fear & Greed Index has been 70, which suggests the traders as a whole are holding a notable greedy sentiment. This isn\u2019t a new development, however, as the market has in fact already been in this territory for the past week or so.<\/p>\n The below chart shows the trend in this indicator over the past year.<\/p>\n\n The graph shows that the index had plunged into fear territory earlier in the month due to the bearish action that the price had seen. However, trader mood has seen a significant uplift with the recovery rally.<\/p>\n In this latest streak of greed, the indicator has touched a high of 73. This value is close to a special region called the extreme greed<\/a>, which occurs at 75 and above.<\/p>\n In the past, the indicator has generally breached this territory during market euphoria. Such a large amount of hype is something that has historically led to tops in the price.<\/p>\n