Bitcoin hits $69K, but be careful with investments due to high volatility After touching $59.7K, it also gained 2.44% in 5 minutes.
At the time of writing, Bitcoin is currently trading in the mid-$63K range, with the Fear-Greed Index at 75, down 15 points from the previous day. The deterioration in sentiment shifted the index from extreme greed to greed. The index is a measure of extreme fear in the market, with readings closer to zero indicating extreme fear and readings closer to 100 indicating extreme optimism. The Fear Greed Index is calculated based on volatility (25%), trading volume (25%), social media mentions (15%), surveys (15%), bitcoin market capitalization (10%), and Google searches (10%).
Commenting on the phenomenon, Alex Thorn, head of research at crypto trading firm and asset manager Galaxy, told DeCrypt: "It is normal and expected for bitcoin to see a sharp 12% pullback after hitting a new all-time high. "This short term correction is likely to be the start of a period of increased volatility as the price rises. It is often said that bull markets "climb a wall of worry. Even during the 2017 bull market, BTC suffered about eight declines of more than 25% before reaching its all-time high. While these were worrisome corrections, BTC eventually climbed the wall and made new highs, so steep corrections in bull markets are perfectly normal and nothing to worry about."
