Bitcoin Market Sentiment Shifts Away From Fear as Price Rallies Above $21K

• The Bitcoin Fear & Greed Index (FGI) recently moved out of the ‚fear‘ zone and into ’neutral‘ for the first time since April 2022.
• This shift in sentiment is concurrent with Bitcoin’s rally to over $21,000.
• Google search traffic for the term ‚Bitcoin‘ is still at its lowest since December 2020, with El Salvador being the most interested in Bitcoin by some margin.

The market sentiment for Bitcoin has shifted significantly over the past week, with the Bitcoin Fear & Greed Index (FGI) moving out of the ‚fear‘ zone and into ’neutral‘ for the first time since April 2022. This shift in sentiment is concurrent with Bitcoin’s rally to over $21,000, as the top cryptocurrency by market cap was range bound for roughly 63 days before breaking resistance to break back above $20,000.

At the start of January, the FGI started in the ‚extreme fear‘ zone, indicating that bearish sentiment had control of the market. However, as Bitcoin rallied from the $15,600 to $17,200 range held throughout November and December, the FGI moved away from extreme fear. Over the weekend, Bitcoin reached a score of 52 on the index as Bitcoin pushed over $21,000. As of press time, the score has retraced slightly to the bottom end of the ‚fear‘ scale at a rating of 45.

While the FGI may have moved away from ‚fear,‘ other global metrics have not shown a similar bullish trend. Specifically, Google search traffic for the term ‚Bitcoin‘ is still at its lowest since December 2020. Interest by region shows El Salvador as the most interested in Bitcoin by some margin, with Nigeria following behind before a large gap before European countries such as Netherlands, Switzerland, and the UK.

Overall, the Bitcoin market has started to show signs of recovery as the FGI moves away from ‚fear.‘ However, it remains to be seen whether this shift in sentiment will continue as Bitcoin continues to rally.