Crypto Fear & Greed Index Maintains Greed Status Amid Israel-Iran Conflict

The Crypto Fear & Greed Index remains in the greed zone at a score of 60 despite geopolitical tensions following Israeli airstrikes on Iran. Bitcoin’s price dipped to $103,000, whereas Ether fell to $2,454 before recovery. Analysts are noting Bitcoin’s surprising strength amidst conflict, with ETF inflows indicating ongoing confidence in the cryptos.

The Crypto Fear & Greed Index, which measures the overall mood in the cryptocurrency market, surprisingly stayed in the “greed” zone amidst escalating tensions between Israel and Iran. The latest update showed a score of 60, even as Bitcoin (BTC) dipped 2.8% to $103,000 on Friday, following an Israeli airstrike that reportedly resulted in explosions in Tehran. Iran responded with numerous ballistic missiles, heightening the stakes.

Just a day prior, on Thursday, the Index boasted a higher Greed score of 71. Bitcoin had been flirting with all-time highs, just shy of its glorious May 22 peak of $111,970. At the moment of writing this, Bitcoin was priced at $105,670 according to CoinMarketCap. Meanwhile, Ether (ETH) faced a steeper decline, dropping nearly 11% to a low of $2,454 before recovering slightly to $2,534.

Some crypto watchers noted Bitcoin’s surprising resilience, given the unfolding geopolitical scenario. Analyst Za wrote in a post on Saturday, “Bitcoin does not seem concerned about the Israel and Iran conflict (yet).” Za emphasized Bitcoin’s unique position as an indicator in these turbulent times. Also chiming in, crypto entrepreneur Anthony Pompliano declared, “Bitcoin is relentless.” Traders seem rather unfazed, maintaining confidence that Bitcoin will stay above the $100,000 mark, a threshold it regained on May 8 for the first time in three months.

However, any fall under this psychological threshold could threaten around $1.74 billion in long positions due to the risk of liquidation, based on data from CoinGlass. In terms of investment inflows, Bitcoin spot exchange-traded funds (ETFs) enjoyed a profitable week, garnering $1.37 billion in inflows over just five days. In contrast, Ether ETFs broke their impressive streak of inflows, experiencing $2.1 million in outflows starting Friday.

Looking back to past incidents, Bitcoin’s current decline appears less severe than after Iran’s direct attack on Israel in April 2024. That blowback led to an 8.4% plummet in Bitcoin’s value, falling from a high that day, although the Index then hit “Greed” at 72 before tumbling to a lesser “Fear” score of 43 by early May.

In the midst of significant geopolitical tensions, the Crypto Fear & Greed Index remains firmly in the greed zone. Despite recent price drops for Bitcoin and Ether, the outlook among analysts and traders seems cautiously optimistic. Bitcoin’s ability to weather current storms raises questions about its resilience, leaving many wondering what lies ahead in this volatile landscape of cryptocurrency.

Original Source: cointelegraph.com