The Fear and Greed Index fell to its lowest levels in 100 days as Bitcoin (BTC) fell bitcoin below the $40,000 mark for the second time in a week.
Against the backdrop of changes to BTC and the cooling of the market in the wake of the widely anticipated spot BTC exchange traded funds (ETF), the Fear and Greed Index has moved into the neutral zone indicating a decrease in the interest of potential investors in cryptocurrency.
The Fear and Greed Index is a scale from 0 to 100 with 0 being the most fearful and 100 being the most greedy.
Currently the Index is at 48 points corresponding to a neutral zone with a predominance of fear. This is the lowest value since Oct. 16, when the Index was 47.
Since the beginning of Nov. 2023, the fear and greed index has been in the “greed” zone, indicating investors’ desire to buy cryptocurrencies. Interest in purchasing digital assets was driven by anticipation of the imminent launch of a Bitcoin ETF.
Now, the Index has fallen amid the launch of trading in spot Bitcoin ETFs in the United States and the descent of BTC below the $40,000 level. Investor sentiment may indicate that the frenzy for Bitcoin exchange-traded funds has subsided.
Grayscale CEO Michael Sonnenshein also believes that most of the 11 U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin ETFs are likely to fail. In his opinion, only “two or three exchange-traded funds will probably achieve some critical mass.”
Read more: SEC Commissioner: Ethereum ETF approvals won’t be same as Bitcoin