Crypto Market Sentiment Shifts to Neutral After Bitcoin ETF Launch

The Fear & Greed Index, which measures sentiment among cryptocurrency market participants, fell from 76 to 52 points in the five days following the approval of the first US spot bitcoin ETFs. This indicates that the market has moved from a "greed" phase to a "neutral" phase.

The Fear & Greed Index had been in the "greed" zone since October 2023, reaching a two-year high of 76 points on January 9, ahead of the ETF launch. On the first day of trading in the new instrument, the index held at 76 points, but then began to decline.

A neutral market state means that market participants are not experiencing either fear or greed. They are not rushing to sell cryptocurrency, but they are not feeling a strong urge to buy it either.

The price of bitcoin, which reached a high of $48,900 on the first day of ETF trading, has since stabilized at $42,000. As of January 15, the price of BTC is fluctuating around the $42,600 mark.

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