Fear And Greed Index Turns Neutral: Is the Crypto Rally Over?

By Aaron Feuerstein January 16, 2024 In Bitcoin, Cryptocurrency, ETFs
  • The Crypto Fear and Greed Index fluctuates between ‘neutral’ and ‘greed,’ reflecting the changing investor sentiments in the crypto market.
  • Santiment’s analysis suggests that the slowdown in the movement of older coins may indicate a pause in the market’s bullish trend.
  • Trader Michaël van de Poppe suggests that while initial responses to the newly approved Spot Bitcoin ETFs in the U.S. have been conservative, their full impact will take time to materialise.

Crypto Is Undecided Between Neutral and Greed

The Crypto Fear and Greed Index has moved back into ‘greed’ territory after momentarily dropping to 52 (neutral) yesterday. The Crypto Fear and Greed Index is a tool used to gauge the sentiments of crypto investors. It’s similar to the traditional Fear and Greed Index used in stock markets, providing a quick overview of the market’s state at any given moment, whether it’s euphoria, neutrality, panic, or anything in between.

Fear and Greed Index January 16, 2024, source: alternative.me

The index scales from 0 to 100, with zero representing ‘extreme fear’ indicating investors are highly worried, which could mean that the market is oversold and might be a buying opportunity. On the other hand, 100 represents ‘extreme greed,’ suggesting that investors may be getting too greedy, which may indicate that the market is overbought and potentially due for a correction.

Santiment Points to Reasons for Market Slowdown

Market analysts Santiment note that the trend of moving older coins might be coming to a pause, at least for the time being. This pause is interpreted as a possible indication that the bullish trend in the crypto market, characterised by rising prices and optimistic trading behaviour, might also be taking a breather. The actions of these large wallet holders often have a significant impact on market trends and overall investor sentiment.

Source: Santiment

However, the analysis also speculates on the potential impact of future actions by these whales. If a few of them decide to move a large number of coins, it could further influence the ‘mean dollar invested age’ curve for Bitcoin. This curve represents the average age of all Bitcoins based on the price at which they were initially bought. A decrease in this metric indicates that more recently purchased coins are becoming active in the market, often signalling increased trading activity and potential shifts in market dynamics.


Santiment advises keeping an eye on the ‘top cap mean dollar age lines’. These are indicators that can signal significant market movements. A drop in the average days represented by these lines could be a precursor to a price breakout, either minor or major. Such a breakout would indicate a significant change in the market, potentially leading to new trends in Bitcoin’s price and overall market behaviour.

Spot Bitcoin ETF Indicates Conservative Sentiment – For Now

Trader and analyst Michaël van de Poppe commented on the market with regard to the approval of several Spot Bitcoin ETFs in the United States last week. While the hype around these ETFs has settled for now, and some were disappointed with the results and first few days of trading, Van de Poppe urges to look at the bigger picture. Although the returns of these ETFs have so far been negative, over time they will become more important and investors will likely warm up to them.

The real impact of the ETF will be shown in the coming few years. A mega bullish event.

Michaël van de Poppe

Aaron Feuerstein

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.

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