Greed and Fear Index Rises to 77, Market Sentiment Continues to Heat Up

The Greed and Fear Index typically reflects the emotional state of investors in the financial markets, quantifying their feelings of greed and fear to help investors assess short-term market trends.

According to different classification standards, the index can be divided into several ranges: below 25 indicates extreme fear, 25 to 49 indicates fear, 50 to 74 indicates greed, and 75 to 100 indicates extreme greed. According to AICoin data, since the Greed and Fear Index broke 70 on October 16, it has hovered near the boundary between greed and extreme greed but has not yet surpassed 75 to reach the extreme greed range. However, today (October 30), the Greed and Fear Index has risen to 77, indicating a shift in market sentiment from greed to extreme greed.

Image source: AICoin

This change reflects a shift in market sentiment from a relatively optimistic greedy state to a potentially overheated extreme greedy state. This emotional shift is due to the market's reaction to certain positive news, such as the macro-level U.S. elections, increased market liquidity, and significant net inflows into BTC spot ETFs, which have boosted investor confidence and willingness to buy assets at higher prices, driving up the Greed and Fear Index.

BTC Hits a New High Since April, Surpassing $73,000

According to AICoin market data, BTC reached a peak of $73,660 early this morning (October 30), marking a 5.8% increase within 24 hours, with a current value of $72,249, setting a new high since April. This price is also very close to the historical peak of BTC at $73,797 set on March 14 of this year.

Image source: AICoin

The rise in Bitcoin's price has triggered a wave of short covering, with the latest data showing that over $113 million in BTC shorts were liquidated in the past 24 hours.

Since July, Bitcoin has been confined to a range between $55,000 and $70,000. Throughout this year, Bitcoin has struggled near the $70,000 mark several times, with previous attempts to break through ultimately proving fleeting. If it can surpass the historical high this time, coupled with support from U.S. election news, it could reach new heights by the end of the year without falling back.

Additionally, 10x Research released a Bitcoin price prediction report on X, forecasting that Bitcoin will reach a new historical high in the fourth quarter of 2024. This prediction is based on two active buy signals, indicating a strong bullish trend in the Bitcoin market this quarter. 10x Research stated that its quantitative strategy model successfully predicted the start of the bull market at the end of 2022.

Conclusion

The surge in market sentiment has driven Bitcoin's price to a new high since April, with the Greed and Fear Index rising to 77, indicating a transition from greed to extreme greed. This suggests that market participants' positive sentiment and confidence in Bitcoin have peaked, also hinting at the risk of market overheating. As Bitcoin's price rises, short covering activity increases, and changes in market liquidity and investor sentiment may further drive up Bitcoin's price. Prediction reports and market analyses show optimistic expectations for Bitcoin's future price, with the potential for Bitcoin to reach new historical highs by the end of the year.

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