Recently, the fear and greed index of the cryptocurrency market has shown significant changes, attracting the attention of investors. This indicator has sharply risen from 40 to above 70, suggesting that market sentiment is shifting from fear to greed. However, compared to previous index changes of similar magnitude, the actual increase in Bit price seems relatively moderate.

Specifically, in April this year, when the fear and greed index rose from 40 to above 70, the price of Bitcoin increased from $90,000 to $110,000, a rise of $20,000. In contrast, this round the index also climbed from 40 to above 70, but the price of Bitcoin only rose by about $10,000.

The difference between this indicator and actual price movements has sparked widespread discussion among market participants. Some analysts believe that this may indicate that market sentiment is optimistic, but the actual buying strength has not fully followed through. Another viewpoint suggests that this could signify a larger potential for future rises.

Regardless, this phenomenon highlights the complexity and uncertainty of the encryption currency market. Investors need to consider multiple factors when making decisions, rather than relying solely on a single indicator. As the market continues to evolve, we will closely monitor subsequent developments and the relationship between this indicator and actual market performance.