As Bitcoin Tops $66K, Fear & Greed Index Moves To Neutral—What’s Next?

Christian Encila

7 months ago

2 mins read

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Analysts observed that the number of Bitcoin active addresses is unaffected by the fluctuating sentiments around the most popular cryptocurrency, saying it remains remarkably stable. This, as the alpha coin breaches the $66,000 level at the time of writing.

Active address count monitors the number of unique Bitcoin addresses that have been involved in a transaction during a given period. This metric is viewed as an essential indicator of the digital asset’s health and adoption.

According to Santiment, the seven-day average of about 3.5 million active addresses indicates that the digital coin’s key yardstick remained strong, unmoved by the neutral sentiment recorded for the Bitcoin fear and greed barometer.

This despite the price of Bitcoin undergoing all that volatility associated with crypto markets, the count of active addresses stood firm, showing that core users and participants continue actively using the cryptocurrency for their transactions and holdings.

Still, Active Addresses Are Somewhat Below Yearly Average

Active addresses have been relatively static over the last few days, and its 2024 monthly average hasn’t yet overcome the yearly average, so engagements are down.

It was found by Glassnode to be in parallel with the slide seen mid-2018 during the Bitcoin price correction after its bull run of 2017.

Although prices have rallied briefly, network activity has not returned in a manner consistent with past cycles. The decline in active addresses and the post-halving period of this year point to a declining need for blockspace by the network, which could be a sign of a wider slowdown in the number of Bitcoin users.

A Positive Long-Term Outlook?

Analysts pointed out that the consistent network activity would suggest that the long-term prognosis for the asset related to cryptocurrencies stays favorable.

It also demonstrated how the basic usage and interaction with the Bitcoin network have not been impacted by the swings in the digital currency environment of speculative investments.

Independent of the enthusiasm or fear that could drive temporary price changes, the persistence of the active address count indicates a fundamental robustness of Bitcoin’s infrastructure and the actual real-world benefit it offers.

Bitcoin is now trading at $66,053. Chart: TradingView

Sentiment On Bitcoin Stabilizing

After the market sentiment experienced highs and lows in the past few days, the Bitcoin fear and greed index revealed that sentiment has found its way in the neutral zone.

At the time of writing, the fear and greed index was at 48, a sign of a market in equilibrium. It also signaled the shift to neutral courtesy of the increased anxiety and greed brought on by changing prices.

Based on various criteria including volatility, volume, and social media trends, the Bitcoin fear and greed index suggests that following the recent strong market swings investors are adopting a wait-and-see strategy before jumping in and investing.

Featured image from Pexels, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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