Crypto sentiment reaches ‘extreme greed,’ correction incoming?

The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment currently indicates a level described as “extreme greed.”

The Crypto Fear & Greed Index stands at  77, indicating that the crypto market is now overrun by greed. In such cases, the instrument is being interpreted as a warning of a possible imminent correction — but no instrument can guarantee any kind of market performance. The website reads:

“When Investors are getting too greedy, that means the market is due for a correction.”

The Crypto Fear & Greed index has not been this high since June. This increase follows Trump’s recent election victory, which was seen as more favorable for the crypto industry.

Brian Armstrong — CEO of the cryptocurrency exchange platform Coinbase — has declared the US Election “a huge win for crypto.”Trump had branded himself as the “crypto candidate,” and promised to make the US the “global crypto capital”. He said back in early September:

“…instead of attacking industries of the future, we’ll embrace them, including making America the world capital for crypto and Bitcoin.”

Trump also pledged favorable regulation and even proposed the creation of a U.S. Bitcoin reserve if elected. This might be part of why Bitcoin hit a new all-time high of over $76,000 after seeing over 7.8% price increase over the last seven days.

Trump is also a stakeholder in the crypto market in the United States. Last month he announced the sale of his World Liberty Financial (WLF) token, which is looking to create an instance of DeFi protocol Aave (AAVE) on the Ethereum (ETH) blockchain. A United States president having exposure to the Ethereum market may be part of the reason why ETH reached over $2,800 after jumping 7.2% in the last 24 hours.

The overall crypto market cap is still short of the all-time high of $2.86 trillion reported back in 2021. The current global market cap is $2.55 trillion, with a trading volume of nearly $143 billion.

The post Crypto sentiment reaches ‘extreme greed,’ correction incoming? appeared first on ReadWrite.