Bitcoin greed drops as BTC falls 13.7% toward year's end

Bitcoin (CRYPTO:BTC) has seen a significant pullback of 13.7% over the past 12 days, leading the Crypto Fear & Greed Index to record its lowest level since mid-October 2024.

As of December 30, the index had a score of 65, still within the "greed" range, but marking a decline from the levels seen in November and December when the index frequently exceeded 70.

The index reached a peak score of 94 on November 22, driven by the U.S. presidential election results and the election of pro-crypto candidates to the U.S. Senate and House of Representatives.

The recent slump in Bitcoin’s price, which is hovering around $93,000 according to CoinGecko, has contributed to the drop in market sentiment.

Traders have expressed concerns about a potential "huge dump" as many shift toward stablecoins.

The Crypto Fear & Greed Index, a sentiment indicator, is calculated based on various factors, including market dominance, surveys, market volatility, and Google Trends.

Markus Thielen, head of research at 10x Research, noted in a December 29 report that some analysts have been predicting a “parabolic move” for Bitcoin leading up to the Trump inauguration, followed by a significant correction.

Thielen, however, anticipates an increase in market volatility.

Veteran trader Peter Brandt speculated in a December 28 post that Bitcoin could be following a "Hump Slump Bump Dump Pump" pattern, where the price rises, falls, recovers, drops again, and eventually rebounds.

CryptoQuant CEO Ki Young Ju agreed with Brandt’s assessment, suggesting Bitcoin is currently in this pattern.

Despite the recent pullback, Bitcoin remains the top-performing asset of the last decade, outpacing traditional assets like gold and the S&P 500.

Bitcoin delivered 129% returns in 2024, while gold and the S&P 500 saw returns of 32.2% and 28.3%, respectively.

At the time of reporting, the Bitcoin price was $93,668.08.