Crypto Fear and Greed Index signals greed: Bitcoin, altcoins to rally?

  • The crypto Fear and Greed Index indicated that the market could get greedy, going forward.
  • Ethereum and Solana could gain from the rise in greed as well.

Bitcoin’s [BTC] price hasn’t budged significantly over the past few days, suggesting a neutral market sentiment.

However, despite the inactivity of BTC’s price, the crypto Fear and Greed Index told a different story.

Holders get greedy

The Fear and Greed Index gave a reading of 57 at the time of writing, which suggested that most of the market was willing to buy BTC and was mostly bullish.

This could mean that BTC’s price may surge significantly going forward and may even reach the $65,000 level.

The long positions taken in favor of BTC had also grown materially from 48% to 51.23% over the past few days as well, according to Coinglass’ data.

Screenshot 2024 05 13 at 4.43.23 PM

Source: coinglass

At press time, BTC was trading at $62,581.09 and its price had grown by 2.21% in the last 24 hours.

Despite the recent uptick in price, the MVRV ratio for BTC had declined significantly, implying that most holders were still unprofitable and there wasn’t much selling pressure on the king coin.

Bitcoin BTC 16.46.15 13 May 2024Bitcoin BTC 16.46.15 13 May 2024

Source: Santiment

However, it won’t just be BTC that will be affected by the rising greed in the markets. As BTC is highly correlated with other altcoins in the industry, they are expected to see growth as well.

Across the board

For instance, Ethereum witnessed an uptick of 1.27% as well in the last 24 hours.

AMBCrypto’s examination of Santiment’s data revealed that the velocity of ETH had also grown significantly, implying that the frequency of transactions occurring on the Ethereum network had surged materially.

This could mean a positive turn of events could unfold for ETH holders in the future.

Even though the price of ETH was growing, it was observed that the network growth for ETH had declined. This indicated that new addresses were losing interest in ETH as a token.

The falling network growth of ETH can hinder the ability of ETH’s price to climb in the future.

Ethereum ETH 17.17.19 13 May 2024Ethereum ETH 17.17.19 13 May 2024

Source: Santiment

Read Bitcoin’s [BTC] Price Prediction 2024-25

Other altcoins such as SOL could also benefit from a greedy market. At press time, SOL was trading at $145.66 and its price had grown by 0.44% in the last 24 hours.

Coupled with that, the social volume for SOL had also surged, indicating a rise in popularity for the SOL token.

Solana SOL 17.22.18 13 May 2024Solana SOL 17.22.18 13 May 2024

Source: Santiment

Next: Led by Bitcoin, why is the crypto market up today?

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