Crypto Fear & Greed Index Hits Lowest Level Since Trump's Presidential Election

The Crypto Fear & Greed Index, measuring the pulse of cryptocurrency market emotions, has dropped to its lowest level since Donald Trump's victory in the presidential election last month. On Monday, the index reached 70, equal to the level before Trump's decisive victory. He won some swing states, while the Republican Party also gained control of the Senate. This index has a scale from 0, representing extreme fear, to 100, representing extreme greed. It helps traders and investors assess whether the market is dominated by fear or greed, guiding their buying and selling decisions. Please provide the text to be translated. Bitcoin Psychology Cools as Fear and Greed Index Drops from Highs After Trump In the days following Trump's election, the index soared to 94, indicating market greed reaching its peak and the possibility of overvaluation. This high level was even reached before Bitcoin hit an all-time high on December 17th. Currently, a drop to 70 still reflects a market driven by greed, with investors still overconfident but less fervent. This change also indicates a slight increase in risk awareness among some investors. At a level of 90, greed often drives the pursuit of uncontrolled profits, while at 70, investors begin to pay attention to warnings of potential corrections or bubbles. Currently, Bitcoin is trading around $95,488 and has dropped more than 8% in the past week. The price of this asset often reflects investor sentiment, rising rapidly when greed drives profit expectations and plummeting when fear drives selling. Is There No Clear Model for Bitcoin During the Holiday? James Toledano, COO at Unity Wallet, has given advice on the behavior of Bitcoin during the holiday season. He drew a parallel between the volatility of Bitcoin and the continuous moisture of water, saying that just as water is always wet, Bitcoin is always fluctuating. "Its behavior is always mixed and there is no clear pattern by the end of the year and the next year," he said. "Sometimes the price increases in the new year and sometimes it decreases. So, historically, we can say that Bitcoin tends to exhibit mixed behavior during Christmas and New Year." He clarified that while lower liquidity may amplify volatility, the lack of significant institutional participation can, on the contrary, stabilize prices. However, exceptions occur in years when macroeconomic news or market catalysts trigger sudden changes. "This year, many things depend on the psychology of investors after the approval of the ETF in 2024 and the factor of Trump as well as other macro trends. A relatively quiet period is possible unless unexpected news triggers volatility. But considering that on January 20, Trump supports Bitcoin returning to the White House, I think we can expect prices to soon see more volatility," he added. DYOR! #Write2Win #Write&Earn $BTC {spot}(BTCUSDT)