In the last 24 hours, the Bitcoin price increased by about 8% and currently hovers over $23,500. Data from Bitcoin sentiment analytics website Alternative.me shows that the BTC Fear Greed Index went up from 21/100 to 31/100. Thus, Bitcoin has left the Extreme Fear zone, where it was since May.
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Buying and selling cryptos depends greatly on emotions. According to the Fear and Greed Index, when traders are too concerned, the metrics can represent from 0 to 30. Meanwhile, 100 shows the highest level of greed, and therefore, the price will likely correct later.
The indicator is based on several factors, including volatility, market momentum/volume, social media activities (e.g. hashtags), Google trends, and more.
The total crypto market cap currently stands at above $1 trillion. Stocks are also up today as the Fed tries to deal with rising inflation. There was positive news in the crypto sector, including Ethereum's upcoming Merge and announcements by the SEC chair about tailoring regulations.