Key Points
- The Fear and Greed Index for cryptocurrency has reached 90, its highest level since February 2021.
- Bitcoin’s market capitalization has hit a record high, with the asset’s price increasing significantly.
The Fear and Greed Index for cryptocurrency has soared to its highest point since February 2021, reaching a level of 90.
This index level, which falls in the 75-100 range, indicates an extreme level of greed among traders, suggesting a strong inclination to purchase more.
Market Sentiment and Bitcoin Performance
As the market rises, there is a tendency among individuals to accumulate more cryptocurrency, leading to higher price movements.
Historically, the index has remained below 70 for several years, but has seen a significant improvement since last fall, indicating a transition to a bullish phase.
At the time of reporting, Bitcoin (BTC) is trading at $66,700, marking a 2.4% increase in the past 24 hours and a 17.7% increase over the past week.
Bitcoin’s market capitalization has also reached a new high, exceeding $1.3 trillion, and the BTC price peaked at $68,600 on March 4, just short of the all-time high set in November 2021.
Liquidations on Cryptocurrency Market
Concurrent with this uptick, over $560 million in liquidations on futures have occurred in the cryptocurrency market.
The majority of these liquidations were observed in trading pairs with Bitcoin, Ethereum (ETH), Dogecoin (DOGE), and Shiba Inu (SHIB).
The highest volume of liquidations typically occurs on the Binance and OKX cryptocurrency exchanges.
