The crypto fear and greed index, a collective metric that estimates the current sentiment on the crypto market, remains in the “greed” zone, while most of the major cryptocurrencies entered the new week with a price uptick.
The index reflects daily emotions and sentiments for BTC (BTC) and other large cryptocurrencies, which are gathered and analyzed from different sources that, amongst others, include current market volatility, volume, momentum, and social media behavior.
Greedy for BTC
The metric, which scales from 0 (maximum “fear”) to 100 (ultimate “greed”), typically passes through the “neutral” range and goes into the “greed” zone during periods of strong price rallies, when demand for crypto outweighs supply.
Following BTC’s price drop in mid-May, the crypto fear and greed index was indicating “fear” in the market for more than two months.
The market sentiment started changing in late July and finally, the BTC metric revisited the “extreme greed” level on August 14.
For the First Time in 3 Months: BTC Fear and Greed Index Shows Extreme Greed
pic.twitter.com/bcOhzoZiWs
— Traders Profit Club (@tprofitclub) August 15, 2021
Greedy for ETH
Similar to BTC, the ETH (ETH) fear and greed index has also been residing in the “greed” zone recently.
The sentiment surrounding the world’s second-largest crypto by market cap also escalated to a state of “extreme greed,” following a major ETH network upgrade that launched on August 5.
The long-anticipated London hard fork, which included the EIP-1559 upgrade, a reductive measure set to reign in the crypto’s supply growth, drove the price of ETH up, nudging the index pointer to “extreme greed” on August 8, when it jumped to 79 points.
ETH Fear and Greed Index is 79 – Exteme Greed pic.twitter.com/QFWTSkE0Qt
— ETH Fear and Greed Index (@EthereumFear) August 8, 2021
Based on the metric’s two simple assumptions, “extreme fear” signals investors’ worry and the opportunity to buy, while “extreme greed” announces the market’s readiness for a correction.
Since both cryptos just started showing tendencies of provoking extreme sentiment, there is still a lot of room left for the reawakened greed to do its magic and drive the prices higher.
Did Andrzej Sapkowski, a Polish economist and fantasy writer, have “the Moon” in mind when he said, “human greed knows no limits?”
The post XRP, ETH fall as popular index flashes ‘Greed’ sign appeared first on CryptoSlate.
