Crypto Fear & Greed Index Remains in Greed Amid Israel-Iran Conflict

The Crypto Fear & Greed Index remains in “greed” at a score of 60 despite geopolitical issues after Israel’s airstrikes on Iran. Bitcoin has seen a slight drop to $103,000, yet market sentiment appears resilient, with analysts noting Bitcoin’s stability. Spot Bitcoin ETFs have also enjoyed a week of inflows, gathering $1.37 billion, while Ether ETFs faced losses.

Despite escalating geopolitical tensions following Israel’s airstrikes on Iran, the Crypto Fear & Greed Index indicates a prevailing market sentiment of “greed.” As reported in its latest update, the Index scored 60 on Sunday. This is notable, especially since Bitcoin (BTC) experienced a 2.8% dip to $103,000 on Friday amidst the conflict. In fact, explosions in Tehran occurred shortly after Israeli forces claimed responsibility for the strikes, leading to Iran firing dozens of ballistic missiles in retaliation.

On the previous Thursday, the Index had a higher score of 71. Bitcoin was approaching its all-time high from May 22, which stands at $111,970. As of now, BTC is trading around $105,670, according to CoinMarketCap. Similarly, Ether (ETH) faced a significant hit, dropping 10.79% to $2,454 at its low, but it has since recovered to $2,534.

Market observers have noted Bitcoin’s impressive resilience amidst the turmoil. Analyst Za remarked on Saturday via an X post that Bitcoin appears unaffected by the ongoing conflict between Israel and Iran. He further stated, “There’s no better indicator than Bitcoin, which makes this notable, in my opinion.” Adding to that sentiment, crypto entrepreneur Anthony Pompliano weighed in, asserting that “Bitcoin is relentless.”

Most traders seem optimistic, holding on to the belief that Bitcoin will sustain its value above the psychological limit of $100,000, which it recaptured on May 8 after three months. A fall below this threshold could threaten approximately $1.74 billion in long positions, as highlighted by recent data from CoinGlass.

Another promising sign is the performance of spot Bitcoin exchange-traded funds (ETFs). They have recorded a strong influx over the past week, bringing in $1.37 billion in inflows throughout the trading week that ended Friday, according to Farside data. However, it’s worth noting that spot Ether ETFs saw an unexpected turn, ending their positive streak with net outflows of $2.1 million.

The decline in Bitcoin’s value in response to the recent airstrikes has been less severe compared to April 2024. Back then, an unprecedented direct attack from Iran on Israel caused Bitcoin to tumble by 8.4% within a day. Although the Index was at a “Greed” score of 72 at that time, it fell to a “Fear” score of 43 just weeks later, on May 2, 2024. This context shows how the current market sentiment may differ amid ongoing conflicts.