Bitcoin’s recent rally to an all-time high has intensified bullish sentiment, with the Crypto Fear & Greed Index signalling extreme market optimism.
Bitcoin Fear & Greed Index Peaks Amid Bitcoin’s $81,000 Rally
The Crypto Fear & Greed Index, a tool measuring sentiment in the cryptocurrency market, surged to 78 out of 100 on November 10, marking a high in the “Extreme Greed” zone not seen in nearly seven months. This sentiment indicator peaked as Bitcoin rallied to a new record, briefly crossing $81,000.
The last time the index reached similar levels was in April 2024, with Bitcoin trading around $70,000, and optimism building ahead of the next Bitcoin halving. In recent weeks, the index has consistently stayed in “Extreme Greed” territory, holding between 70 and 78, reflecting heightened investor enthusiasm following Donald Trump’s win in the U.S. presidential election.
Trump’s Victory Spurs Bullish Momentum
Bitcoin’s price spike appears closely tied to political developments. With the election of Republican Donald Trump, a candidate who has previously signalled a favourable stance towards crypto, market sentiment has turned increasingly optimistic. The recent surge has been bolstered by the election of other pro-crypto figures to Congress, signalling potential regulatory support in the upcoming term.
Although Bitcoin’s price has slightly dipped to $80,182, the Crypto Fear & Greed Index remains high, slipping only slightly to 76 as of November 11. Analysts suggest that Bitcoin may see further gains leading up to Trump’s January 2025 inauguration, as expectations grow for a more favourable regulatory environment.
The Fear and Greed index, which aggregates metrics such as market volatility, trading volume, social media sentiment, Bitcoin’s market dominance, and trend data, is a widely watched gauge of investor sentiment. Surveys, previously a component of the index, are temporarily paused, leaving other metrics to drive the overall score.
Google Searches for “Bitcoin” Rise Amid Renewed Interest
Bitcoin’s recent surge has also driven a noticeable uptick in online interest. Google searches for “Bitcoin” have increased significantly, although they remain well below their peak in May 2021. According to Google Trends, the current search interest for Bitcoin scores 48 out of 100, suggesting growing retail awareness but still far from past bull-run levels.
Speculation around a possible leadership change at the Securities and Exchange Commission (SEC) adds to the market’s optimism. Trump’s campaign has promised a reshuffle, with plans to replace SEC Chair Gary Gensler. Mark Uyeda, an SEC commissioner who has voiced criticism of the current regulatory approach, is reportedly a candidate for the role, as noted by crypto attorney Jake Chervinsky. Industry participants anticipate that Uyeda’s potential leadership could usher in a more favourable regulatory stance toward cryptocurrency markets.
