Crypto Fear and Greed Index reaches highest level since Bitcoin’s all-time high
The Crypto Fear and Greed Index has reached its highest index score this year, reaching levels not seen since Bitcoin (BTC) posted its all-time high in November 2021.
An update to the index on March 20 showed a score of 68, placing it well within “Greed” territory.
The Crypto Fear and Greed Index aims to numerically present the current “feelings and sentiments” towards Bitcoin and the cryptocurrency market, with the highest score being 100.
The last time the index recorded a score above 66 was on November 16, 2021, just days after Bitcoin’s all-time high of over $69,000 was recorded on November 10, 2021, according to Coingecko.
Sentiment around BTC and crypto has been bullish since the collapse of Silicon Valley Bank and the resulting fallout in the traditional financial system.
Over the past seven days, Bitcoin has recorded gains of around 27.8% according to Coingecko data, reaching $28,000 for the first time since June 2022.
Crypto financial services Matrixport head of research Markus Thielen suggested in a March 20 analysis that more upside is on the cards for BTC, as “the liquidity story continues to be in Bitcoin’s favor.”
The analyst has adjusted his short-term price target to $36,000 by June 2023, while tipping a year-end target of $45,000.
Meanwhile, Charles Edwards, founder and CEO of investment firm Capriole, predicted an even more ambitious price target of $100,000 for BTC.
In a March 14 chirpingEdwards, called the 2023 BTC price action a “Textbook perfect Bitcoin ‘Bump & Run Reversal'” and based on his interpretation of the data, he believes “The target is above $100,000.”
However, he noted that “chart patterns fail, don’t use this as a trading/investment plan. Manage your risk!”
Ryan Selkis, founder and CEO of crypto analytics firm Messari shared a similar “rough” prediction in a March 16 post, explaining why he thought it was possible for BTC to reach $100,000 in the next twelve months.
According to Selkis, a combination of bank failures and changes in federal monetary policies will see more outside investment in crypto.
“But the key is threading the needle so institutions can buy it and defend it with us. Best case scenario right now,” Selkis said.
“This is an optimistic bet on the future, as BTC is treated as a life raft and a peaceful exit option,” he added.
Related: Bitcoin stays out of fear for 11 straight days as price tips near 24K
Bitcoin has been ranked by investment firm Goldman Sachs as the best asset this year, achieving 51% year-to-date in absolute returns.
In a March 17 note, the asset manager revealed that Bitcoin’s total return YTD has outperformed the likes of information technology, gold, the NASDAQ 100 and the S&P 500, among others.
