Bitcoin Fear and Greed Index Plunges Into \'Extreme Greed\' Territory for First Time in 18 Months

The Fear and Greed Index, a popular Bitcoin sentiment indicator, has now plunged into the "extreme greed" territory with 25 points out of 100.

A gauge of fear and greed in the Bitcoin market has plunged to "extreme greed" territory, underscoring traders' bullish sentiment amid a rebound in the cryptocurrency.

The Fear and Greed Index now stands at 25 points out of 100, denoting "extreme greed." This marks the first time the index has recorded such an extremely low reading in 18 months.

The last time this happened, the cryptocurrency market was still attempting to recover from the fallout following the collapse of the FTX exchange.

Now, the market is being impacted by Mt. Gox repayments and a continuous selling spree by the German state of Saxony.

On Thursday, the price of the leading cryptocurrency soared to $59,516 on the back of lower-than-expected US inflation data, which revived hopes of multiple rate cuts this year.

However, Bitcoin's attempt to break through the $60,000 resistance level failed as the cryptocurrency faced another round of strong selling by Saxony.

The state sent another $286 million worth of BTC to various trading platforms on Thursday.

On a positive note, the state now has almost no Bitcoin left to sell, as it holds less than 10% of the coins that were confiscated from the Movie2k website in January.

Meanwhile, a steady flow of inflows into Bitcoin exchange-traded funds (ETFs) is likely contributing to the positive sentiment.

On Thursday, these products received nearly $79 million in fresh money, with BlackRock's IBIT accounting for the vast majority of the sum.

Bitcoin is currently trading at $57,246, according to CoinGecko data at press time.

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