The Crypto Fear and Greed Index , which tracks Bitcoin (BTC) as well as broader crypto market sentiment, dropped 19 points in a day to 50, its lowest since October 14th, 2024. This shift brings the index into the Neutral zone after months in the Extreme Greed and Greed zones. Key Factors Bitcoin fell below $92,000 on January 9th, influenced by reports that the U.S. Department of Justice could sell $6.5 billion worth of Bitcoin seized via the Silk Road darknet marketplace, although no Bitcoin has been sold yet. Analysts also point to expectations that the U.S. Federal Reserve may tighten monetary policy in 2025, which could further affect the crypto market. As of this writing, BTC is trading at just above $94.1K. Further Retracement Possible Rising treasury yields and a stronger U.S. dollar have also kept Bitcoin below $100,000 in recent weeks. Additionally, U.S. spot Bitcoin ETFs saw nearly $570 million in outflows on January 8th, suggesting further retracement for Bitcoin. The Fear and Greed Index is based on market volatility (25%), trading volume (25%), social media sentiment (15%), the dominance of BTC (10%), and other trends (10%). It reached a 2024 high of 94 on November 22nd, boosted by optimism around Donald Trump fueling speculation about a U.S. Bitcoin reserve.
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