The Crypto Fear & Greed Index has seen a major uptick in the past 24 hours following a rebound in the price of Bitcoin. While still in extreme fear mode, this jump from a low of five in the past week proves that broader market sentiment is changing.
Crypto market exiting extreme fear
Per data from CoinMarketCap, the crypto Fear & Greed Index current has a reading of 16. This is an improvement from the 11 it recorded in the past 24 hours.
By implication, this shift marks the first major turnaround in sentiment this February as the index recorded its worst reading in almost five years. This is not coincidental, as it comes as the price of Bitcoin saw a sharp rebound from a weekly low of $60,074.
As of writing time, the coin was changing hands for $67,729, mildly retracing its trend from an intraday high of $69,953.53. Riding on the BTC breakout, altcoins also upturned their negative rallies overnight.
While the Ethereum price reclaimed $2,050 on a 2.8% surge, Binance Coin jumped 4% to $625. The Solana, Cardano and Dogecoin price has also recorded significant boosts in line with the broader market outlook.
With the current trend, the market might be exiting its extreme fear zone, opening the pathway for more positive price action.
Jane Street catalyst
At the heart of this broader market rebound is the sentiment around quant trading firm Jane Street. Serving as an Authorized Participant for many crypto funds, the firm is facing a backlash for alleged manipulation of the Bitcoin price.
While the only thing to substantiate these claims directly is a lawsuit from the now-defunct Terraform Labs, the industry believes future suppressions might be over.
In addition, the market recovery comes from the highest daily inflow spot Bitcoin ETF products have recorded thus far this month. With BlackRock and Grayscale leading the half-billion inflow, the broader tide favors recovery if the current outlook is sustained.
Source: https://u.today/bitcoin-rebound-triggers-uptick-in-crypto-fear-greed-index
