The crypto fear and greed index has remained in the green lately as Bitcoin and other altcoins have staged a strong comeback. The index rose to the greed zone of 75 and is hovering at its highest point in months.
Why the crypto fear and greed index is rising
Fear and greed are the two most important sentiments in the financial market. When investors are fearful, they are usually inclined to dump financial assets and vice versa. This explains why the crypto fear and greed index has surged recently.
A closer look at the digital currency industry shows that most of them have rallied recently. Bitcoin crossed the $52,000 mark last week. This is a remarkable situation for a coin that crashed to $15,000 after the FTX crash.
Bitcoin is not alone. Ethereum, which crashed to $800 after the FTX collapse, has jumped to over $2,900, giving it a market cap of over $350 billion. If Ethereum was a company, it would be the 28th biggest company in the world. It would be bigger than companies like Chevron, Salesforce, Oracle, and AMD.
It seems like the greed is happening in all areas of the financial market. The CNN Money fear and greed index has moved to the extreme greed area of 77. A closer look at its smaller gauges like market momentum, stock price strength, put and call options, safe haven demand, and junk bond demand have moved to the extreme zone. Market volatility, as measured by the VIX index, has moved to the neutral point while stock price breadth has moved to the greed point.
This greed is rising as American equities sit at their all-time high. The S&P 500 index has already crossed the $5,000 level and analysts at Goldman Sachs believe that more upside is coming. They boosted their estimate to $5,200. Other indices like the S&P 500 and Dow Jones also continued surging this month.
This price action, which is also affecting stocks, is because investors anticipate that the Federal Reserve will start cutting interest rates later this year. Besides, inflation is still moderating albeit at a slower pace. In most cases, these financial assets do well when there is expectation that the Fed will cut rates.
Kaspa and Minu prices jump
Most altcoins have rebounded sharply in the past few days. Some of the most notable ones were Kaspa and Minu. Kaspa price surged to over $0.185, its highest point on record, giving it a market cap of more than $4 billion. It has risen in the past three straight weeks, and most recently, it jumped above the key resistance point at $0.1547, its highest point in November.
This Kaspa rally is its longest streak since it jumped for five straight weeks between October and November last year. It has also invalidated the double-top pattern, meaning that the bullish momentum may continue in the coming months.
Meanwhile, Minu token has surged by more than 106% in the past 24 hours and over 566% in the past 7 days. This surge has brought its market cap to more than $3 million. Minu is a meme coin that aims to become as successful as other tokens like Pepe and Bonk. The current surge happened as Bnance listed it.
The other most notable tokens in the industry are Fetch.ai, Altlayer, Xai, and Ethereum. This trend may continue rising now that Bitcoin has formed a bullish pennant pattern.
