Crypto Fear & Greed Index Hits 30-Day High After Better Than Expected Inflation, CPI Data
Bitcoin (BTC) is currently focusing on reclaiming the $18,000 level as the flagship cryptocurrency shows signs of a possible bullish breakout. With the asset making significant gains above $17,000, there is a general shift in social sentiment around Bitcoin.
In fact, as of December 14, the crypto ‘Fear and Greed Index’ social indicator has reached a 30-day high of 30 points. Notably, the cross-market sentiment gauge last ranked higher on Nov. 8 at 31, according to data from Alternative.me.
It is worth noting that the social indicator tips investors about possible upcoming price movement through an evaluation of the general market. Along these lines, rising readings suggest that the index is likely moving towards greed, a condition associated with many buyers, while lower readings point to fear engulfing the market.
Bitcoin reacts positively to inflation data
Along these lines, the latest score comes after Bitcoin reacted positively to the latest consumer price index (CPI) and inflation data that came in lower than expected. In fact, the data was a relief since it highlighted that the Federal Reserve’s efforts to contain inflation were bearing fruit.
US November inflation reached 7.1% year-on-year against an estimated 7.3%, while the monthly CPI was 0.1% lower compared to an expected 0.3%.
In recent months, fear has dominated the market as Bitcoin continued to trade below the crucial $20,000 position after being weighed down by inflation. Furthermore, Bitcoin’s potential to embark on a bull run was nullified by the collapse of the FTX cryptocurrency exchange.
Bitcoin price analysis
As things stand, Bitcoin is changing hands at $17,836, with the daily chart registering gains of nearly 4%. Elsewhere, the weekly Bitcoin trade shows in the green zone with gains of almost 6%.
According to Bitcoin’s one-day technical analysis, the asset continues to enjoy bullish sentiment with a summary consistent with “buy” at 10, while moving averages are also in favor of buying at 9.
Besides the positive impact of the inflation data, Bitcoin still needs input from the bulls to regain the $18,000 position. It’s worth keeping in mind that both Bitcoin bulls and bears have had almost equal strengths recently.
At the same time, Bitcoin investors will monitor other activities in the crypto space, such as the arrest of FTX founder Sam Bankman-Fried and the possible prosecution of the Binance cryptocurrency exchange in the United States.
However, the crypto community remains positive about the future prospects of Bitcoin and the overall market moving into 2023. As reported by Finbold, a poll by crypto tracking website CoinMarketCap shows that over 80% of crypto enthusiasts believe that 2023 will be bullish with Bitcoin ranking among the main drivers.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
