Crypto Fear and Greed Index Hits Highest Score This Year
The Crypto Fear and Greed Index has reached its highest level this year, with Bitcoin recording significant gains, while analysts predict further upside, with some setting a price target of $100,000.
The Crypto Fear and Greed Index has recently reached its highest level this year, hitting a score of 68, placing it in the "Greed" territory. This index aims to numerically present the current emotions and sentiments towards Bitcoin and the cryptocurrency market, with a maximum score of 100. The last time the index recorded a score above 66 was in November 2021, just days after Bitcoin's all-time high of over $69,000.
The recent bullish sentiment around BTC and crypto can be traced back to the collapse of Silicon Valley Bank and the resulting fallout in the traditional financial system. Bitcoin has recorded gains of around 27.8% over the past seven days, hitting $28,000 for the first time since June 2022.
Markus Thielen, head of research at crypto financial services firm Matrixport, suggested that there is more upside on the cards for BTC as the "liquidity story continues to be in Bitcoin’s favor." He has adjusted his near-term price target to $36,000 by June 2023, while he has tipped a year-end target of $45,000.
Charles Edwards, founder and CEO of investment firm Capriole, predicted an even more ambitious price target of $100,000 for BTC. He called BTC price action in 2023 a "Textbook perfect Bitcoin 'Bump & Run Reversal" and based on his interpretation of the data, he thinks "The target is over $100,000." However, he did note that chart patterns do fail and advised investors to manage their risks.
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 hit $100,000 over the next twelve months. According to Selkis, a combination of bank failures and changes to federal monetary policies will see more outside investment into crypto.
Goldman Sachs has ranked Bitcoin as the top-performing asset this year, with a gain of 51% in year-to-date absolute returns. In a March 17 note, the asset manager revealed that Bitcoin's total returns YTD have outpaced the likes of information technology, gold, the NASDAQ 100, and the S&P 500, among others.
Despite the optimistic predictions and bullish sentiment surrounding BTC, it is important to note that the cryptocurrency market is volatile and unpredictable. Investors should always manage their risks and make informed decisions based on their own research and analysis.
