- CoinGecko’s report reveals a historic shift as the crypto market records four consecutive fear-free months signaling bullish sentiment.
- The Fear and Greed Index averaged 45 over six years indicating a persistent tilt toward fear.
- The recent positivity coincides with the absence of “fear” days from November 2023 to February 2024.
The sentiment in the cryptocurrency market has shifted dramatically in the past year according to a new report by CoinGecko, a leading cryptocurrency data aggregator. The report analyzed Fear and Greed Index data from February 2018 to March 2024 and reveald that for the first time it recorded four consecutive months without any days registering “fear”.
The study revealed that the crypto market has spent the majority of the past six years in a state of fear. Over the entire period the Fear and Greed Index averaged a score of 45 which indicated a slight tilt towards fear rather than neutral sentiment. Also, it was highlighted that periods of extreme bullishness which were categorized as “extreme greed,” have been shorter compared to extended stretches of fear and negativity.
The report finds a recent change in sentiment as the Crypto Fear and Greed Index recorded no days in “fear” territory from November 2023 to February 2024. This current bullish sentiment coincides with the upcoming Bitcoin halving event in April.
As previously reported by CT, the cryptocurrency market was experiencing dynamic changes leading up to the much-anticipated Bitcoin halving which has historically acted as a catalyst for market movements. On-chain analytics platform Santiment had shared that projects focusing on AI and NFTs had demonstrated their growing influence and potential within the crypto ecosystem.
There was a dramatic shift in sentiment during the 2018-2019 crypto winter. This period witnessed the Fear and Greed Index recording its highest fear readings with 2018 registering a staggering 86.2% of days categorized as fearful. This bear market followed a peak in total crypto market capitalization of $0.85 trillion in early 2018 which subsequently crashed due to the bursting of the ICO bubble.
The report also explored the contrasting market psychology of 2021 and 2022. 2021 witnessed the most extended period of greed across the entire timeframe. This bullish sentiment coincided with significant growth in the total crypto market capitalization and Bitcoin reaching new highs above $69,000. However 2022 marked a sharp reversal with the market experiencing fear for nearly the entire year likely driven by events like the Terra Luna crash and the FTX collapse.
