The Crypto Fear & Greed Index has hit a 100-day low as Bitcoin experiences a decline following the green light for spot exchange-traded funds (ETFs) in the United States.
As of January 24, the index recorded a score of 48, positioning it within the “Neutral” sentiment range. This marks a two-point decrease from the previous day and a significant 15-point drop compared to the same day last week when sentiment was categorised as “Greed.”
This represents a 100-day low for the index, with a prior low point of 47 recorded on October 16, 2023, when Bitcoin was trading slightly above $28,500, according to Cointelegraph Markets Pro.
The index compiles and assesses data from six key performance indicators in the market to evaluate daily crypto sentiment. These factors include volatility (25%), market momentum and volume (25%), social media (15%), surveys (15%), Bitcoin’s dominance (10%), and trends (10%).
Despite Bitcoin reaching a two-year high of nearly $47,000 on January 8, just before the approval of multiple spot Bitcoin ETFs in the U.S., its price has witnessed a decline to under $40,000 following the approval of these new ETF products.
Particularly noteworthy is the Grayscale Bitcoin Trust (GBTC), which has experienced over $2 billion in outflows since its transition to an ETF. This has led to consecutive days of net outflows from the 10 spot Bitcoin ETFs.
The index reveals that sentiment had been firmly in “Greed” territory from late October as the market eagerly anticipated spot ETF approvals. It peaked at a score of 76 on January 1, the day after the approval of several Bitcoin funds, marking its highest point since reaching 77 on November 11, 2021—the day after Bitcoin achieved its all-time high of over $69,000.