Currently, the Crypto market is in an interesting situation where we can see the greed index is very high. It means a lot of people are trying to enter the market because they feel like missing out and this is the situation when a lot of people also end up buying at higher prices. It is part of the market and it often happens when things are looking more bullish and people just don't want to miss out on this opportunity so they just try to enter it at whatever price they get it. This mechanism or metric is called the fear and greed index which means when there is a lot of greed then it simply means that a lot of people are buying it. When there is a lot of fear then people are just trying to exit the market and I smart investor will act the other way around.
If there is a lot of greed then for an investor it is a good time to sell and when there is a lot of fear then it is a good time to buy. Most of the time it works well but not necessarily because sometimes it is also possible that you might not get the benefit of this situation but it is surely something that you can consider to see how things are going in the market and what should be the right point of action for you.
If you look at the above snapshot then the greed index is extremely high which is called extreme greed and it is 87 but generally, it is around 50 or 60 which should be considered a good amount. After the US election result, things have gone bullish and I don't know if we can call it the startup bull market now or if we should wait for some more time but overall things are looking nice in the market where I believe a lot of people are trying to enter the market and it is good. It is good because a lot of people would be bringing new money into the market which will contribute to the price rise and this will benefit the existing investors who have been part of the market for so long.
New money flow is important to grow the price and this is how the new money flow is expected to happen. I just hope that this nice momentum continues to be in the market so that we can see the prices going even higher and Bitcoin crossing 100 K us dollars price.
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