Crypto market in ‘extreme greed,’ needs deleveraging before $100K BTC
The Crypto Fear & Greed Index reached a score of 80, indicating 'extreme greed' on November 12, 2024. This spike in sentiment follows Bitcoin's price surge to a high on November 11. Analysts note that a similar index score previously led to an over 18% correction in Bitcoin's price during April 2023. With leveraged trading ratios reaching unsustainable levels, industry leaders warn of potential deleveraging before Bitcoin can realistically target the $100,000 milestone. Kris Marszalek, CEO of Crypto.com, emphasized the need for risk management amidst high leveraged positions. Despite these warning signs, many analysts remain bullish on Bitcoin's prospects through 2025, driven by macroeconomic factors, including the anticipated effects of Donald Trump's presidential victory on market sentiment and investment strategies. Overall, while caution is advised, the market's upward momentum may continue as institutional and retail investors look to capitalize on further gains.
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