The crypto market recently surged, hitting its highest fear and greed index score of 76 since 2021. In the past 24 hours, around $150 million in short positions were liquidated as a result.
This week, announcements regarding the approval of spot Bitcoin exchange-traded funds (ETFs) are anticipated. Market participants are heavily leaning towards expecting approval from the Securities and Exchange Commission (SEC). Consequently, Bitcoin and the wider crypto market have been experiencing a rally since late 2023.
The Bitcoin Fear and Greed Index, as of January 9, 2024, stands at 76, marking a level of extreme greed. This level hasn’t been seen since 2021, coinciding with Bitcoin’s peak. The index considers factors like volatility, market momentum, social media sentiment, dominance, and trends.
Bitcoin soared to $47,000 recently, experiencing a 9% surge that led to nearly $150 million in short liquidations within a day. Surprisingly, long positions worth $56 million were also liquidated. The imminent ETF decision could trigger significant market volatility, evidenced by a massive $500 million in trades facing liquidations in under an hour on January 3.
Bitfinex, a crypto exchange, shared its Alpha report with BeInCrypto, cautioning readers about potential pullbacks amid these developments.
