Topic: The 'Greed' index of Bitcoin users is sharply increasing. (Read 235 times)

There is no question that Bitcoin is smelling good these days as more and more people and investors look at it as a safe haven...in the same way they look at gold and silver. And this can be the same kind of moments when Bitcoin was born after the big global crisis in 2008 which was also centered in banking and finance. Of course, this is not going to be the last time when banking is failing us - when fiat money is showing its big weakness. To protect oneself from all of these things, one can use Bitcoin for the purpose - though of course one has to mind its extreme volatility.

The greed and fear index are mostly depends on the market, when the price keep rising continuously the greed index will increase too and when the price suddenly decreasing, the fear index will increase. The greed index will not increase when the price is suddenly rising because many people think it's just a bull trap, so they will wait until the next few days later. These kind people are mostly lost because they're buy Bitcoin at the peak, except they can wait for long time.

I feel quite normal with this indicator because it reflects exactly what the market is doing lately, we all see the market bleak throughout 2022 and when there is good news people will have a reason to back more.
This could indicate market volatility and investor interest in the value of Bitcoin. However, this is also a warning sign for caution when investing in Bitcoin as the risk of losing money may increase.

Bottom could be seen already but before a big bull run, bottom will have to be retested. In history, Bitcoin did not make new all time high one year before its halving year. History has its rhythm and we can believe in history before a new history appears. Like in this bear market, it is a first time in Bitcoin history when it fell down to under its previous cycle's all time high about $20,000. It even fell to under $16,000 that is far below 2017 all time high.

I believe in history and I believe in 2019 and 2023 fractal for this recovery.

The increase in greed came from the rapid rise between $21,000 to $28,000, which is a price that we have been watching for almost a year. Therefore, everyone began to be optimistic that the bottom might be, and the worst has happened, and therefore the turn of collecting profits will come.

However, it cannot be relied upon as an indicator for measuring the price direction during the coming weeks.

Let's see what happens in the coming days.

Volume is most important and without big organic growth in trading volume, price can not make new tops or new all time highs. There are wash trading volume that is not counted for organic real trading volume.

Trading volume can be impacted by some zero-trading fee campaigns from big exchanges like Binance. People can become more actively trading when they no longer have to mind about trading fee. However, such trading volume won't be a signal of market growth, just for one or some exchanges.

Binance Launches Zero-Fee Bitcoin Trading

the "greed index" is not a good metric

for instance looking at the exchanges volume.. it has actually gone DOWN each day of the last 4 days.
thus less people are trading

the greed index just greenlights the price if the price goes up.. but here is the thing. people do not buy whole coins. thus the price does not have to increase by more people buying whole coins

we can have days where 1000 people an hour buy coin at 1btc each of $27.5k,  in fiat increments +$1 where by after an hour the price increase by $1000 ($28.5k)

however people can fear the market and only want to trade $275 each for 0.01 instead of $27.5k for 1btc
but they can move their orders by $0.02 meaning after an hour of 1000 orders. the new price is $295 for 0.01 which equates to $29.5k for 1 btc thus the price moves up faster/by more. even though those 1000 people are more fearful and spending less per order

a good fear index is by taking order history of unit purchases and average out how much people actually spend per order. and linking it to the volume to actually see if there are more orders of more fiat being willing to be spent

It does not increase to extremely greed area and if climbs to that area, Bitcoin can continue its recovery to more than $40,000 or a little bit lower than $50,000 like $48,000. I really don't think Bitcoin can have a recovery in bear market to very close to its all time high.

Bitcoin fear and greed index chart.

In 2019 bear market, it only recovered to more than $12k or about half of its 2017 all time high. By history, I think $30k is a reasonable top price of 2023 recovery.

I became interested in how the index is calculated and what it actually means. It seems that it's a scale from 0 to 100 (at least, according to CNN Business), where the first quarter is extreme fear, then goes fear, then neutrality in the middle, then greed and finally extreme greed. So at this scale, greed at 68 doesn't mean that there's greed at 30, for instance. Greed starts at 51 and is up to 75, so 68 is well into the second half, sure, but there's also a whole section of extreme greed ahead. I also find it interesting that the stock market is currently at its fear stage, so if Bitcoin is in the greed area, it's currently very uncorrelated with the stocks.

You are so devoted to your copy/paste job that you didn't even notice that you copied the same paragraph twice. Shitposting at its best.

There's a genuine particular crypto news site I follow that also provides information about the cryptocurrency market greed and when I see the result I was not surprised that the greed point among the Bitcoin investors increased sharply because are inclined to seek for the best alternative when they see or sense an issue of losing their investment or holding in a particular setting.
What we're seeing now is just like the case of people moving to Bitcoin as an alternative during the time of total lockdown that led to economic meltdown.

Greed will surely rise since the price is increasing in a sharply manner. The GFI measures the ratio of buy and sell which means it will always result to higher Greed Index once the price is continuously rising on an uptrend momentum. Actually this Greed index is sometimes being use to scared buyer but in reality there’s a huge demand on Bitcoin that makes this uptrend movement that can’t be categorized as Greed.

I believe 60+% is still not bad for accumulating considering how strong the market right now that consolidating on the previous resistance to be the new support.

This should possibly means that the rate at which we are determined to hold for a higher profit has increased to the maximum, no one is really moved by the short run again, we are equally expecting something huge, and to achieve that we should be greedy enough to call and see $28k as something small, and $70-100k as something huge which might be what is calculated as greed, because the selling rate is really low and their is enough buy order than that of selling orders.

I feel this index is increasing because the people who thought banks are safe haven and cannot collapse now know that's not correct, they have some similarities with centralized exchanges, just that banks are better regulated and the government can print money out of thin air to bail them out. But the system works with a fractional reserve, and your money in your account is only numbers, because they have been used to fund investments and to buy assets.

BTC allows people to be bankers of their own money, when they own their money, no institution can gamble or trade with it; and it is safe if they store it in a safe enviroment, losing it can only be due to their own mistake and not that of any third party, when many people understand this, they would keep most of their money in BTC and allow the banks to hold the amount they can afford to lose .

Btc price dropping does not equate to investors losing money, i think at this point, the saying "invest what you can afford to lose" should not apply to btc but to most of the numerous alts we have in the market because in the end btc always recovers with full force, and sometimes react differently from predictions.
So it is normal to see investors greed index increasing knowing what btc can do. This is the time to start getting prepare for the next bull run, not in the bull season.

Okay that is good, but it is also good to know that you should be wise while investing. According to what I am reading online and that is what I am thinking, it is possible for bitcoin to reach $30000 before it retrace back to $26000 or below. It is also possible that the price of bitcoin may continue to increase. But we should invest what we can afford to invest this time that bitcoin price has increased to certain high price. We should not believe everything that we read on news and fomo because of it.

When the price of Bitcoin reached $28,000, the greed index of users surged to 68 points, higher than when the digital currency reached its peak of $69,000.

According to Coin Telegraph, the positive sentiment among Bitcoin users is currently at its highest level in 16 months. Data from Alternative, a website specializing in monitoring cryptocurrency market fluctuations, shows that the greed level of Bitcoin users reached 68 points on March 21st.


The last time the market saw this index above 66 points was on November 16th, 2021, when the price of Bitcoin hit $69,000.

The enthusiasm among Bitcoin users, in particular, and cryptocurrency users in general, has increased significantly after the Silicon Valley Bank's banking system collapse. Some other banks have also closed or encountered difficulties. The cryptocurrency community sees these as signs of a traditional financial crisis, and Bitcoin as a safe haven. Data from Coingecko last week showed that the price of Bitcoin had increased by 27.8%. On March 20th, BTC broke the $28,000 mark, the highest since June 2022.


The enthusiasm among Bitcoin users, in particular, and cryptocurrency users in general, has increased significantly after the Silicon Valley Bank's banking system collapse. Some other banks have also closed or encountered difficulties. The cryptocurrency community sees these as signs of a traditional financial crisis, and Bitcoin as a safe haven. Data from Coingecko last week showed that the price of Bitcoin had increased by 27.8%. On March 20th, BTC broke the $28,000 mark, the highest since June 2022.


Bitcoin has also been rated as the best-performing asset by Goldman Sachs, with a 51% absolute return from the beginning of the year. On March 17th, Goldman Sachs stated that Bitcoin's total profit in the first three months of the year has far surpassed gold and other assets.