Cryptocurrency Market Participants Are Optimistic About the Possibilities of “Digital Gold”
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- Crypto “Fear and Greed” Index Jumps to Early April Levels
- Traders optimistic about merge
As Ethereum (ETH) and Bitcoin (BTC) grapple with key levels of resistance, the crypto sentiment indices are moving back into “neutral” areas.
Crypto “Fear and Greed” Index Jumps to Early April Levels
For the first time since April 6, 2022, the cryptocurrency’s “Fear and Greed” index is at 46/100, according to an estimate by The Alternative. Although it is still below 50/100, analysts consider this metric to be “neutral”.
Bitcoin Fear and Greed Index is 46 – Neutral
— Bitcoin Fear and Greed Index (@BitcoinFear) 13 August 2022
Current Price: $24,406 pic.twitter.com/alELML0cVE
Therefore, this important indicator of Bitcoin (BTC) sentiment managed to offset losses caused by the collapse of Terra (LUNA) and the subsequent dramatic drop in crypto prices.
In June 2022, the index fell briefly to 6/100, indicating levels unseen in many years. Just a week ago the index was at 30/100.
Yesterday, Bitcoin (BTC) attempted to retest the $25,000 level for the first time in two months. The second cryptocurrency, Ethereum (ETH) jumped above $2,000.
Bitcoin (BTC) and Ethereum (ETH) holders who were lucky enough to buy bottom in mid-June 2022 are now up 40% and 100%, respectively.
Traders optimistic about merge
In the last days, crypto market sentiment is positive as many holders expect the price to rise after the merge activation by the Ethereum (ETH) mainnet. This game changing event is expected to take place on 15th September.
However, trader Avi Feldman cautioned that this enthusiasm could be dangerous. Usually, big rallies don’t happen right after a major technological upgrade.
As previously covered by U.Today, BitMEX co-founder Arthur Hayes hinted at the scenario that would allow the price of ETH to rocket after the merge.