Fear and Greed Index Plummets to Seven-Year Low
The cryptocurrency market is on edge as robust U.S. employment data dampens expectations for interest rate cuts. Bitcoin (BTC) briefly dipped to around 65,000 USD, while the Fear and Greed Index hit its lowest point since 2019, marking a seven-year nadir.
As of 10:10 a.m. (South Korean time) on Thursday, Bitcoin’s price on Bithumb, a major South Korean exchange, climbed 0.92% from the previous day to 99,655,000 KRW (approximately 69,131 USD).
Simultaneously, CoinMarketCap reported that Bitcoin’s global price fell 2.46% to 67,549 USD. After hovering around 69,000 USD the day before, Bitcoin slid to as low as 65,934 USD that morning.
On Wednesday, the U.S. Department of Labor announced that non-farm payrolls increased by 130,000 last month, more than doubling market expectations of 55,000. The unemployment rate also dropped to 4.3%.
These unexpectedly strong employment figures have weakened expectations for Federal Reserve interest rate cuts, leading to a pullback in risk asset sentiment.
The Fear and Greed Index, maintained by crypto data provider Alternative.me, plunged 6 points to 5, its lowest level since August 2019. The index ranges from 0 (extreme fear) to 100 (extreme greed).
SEC Chair Prioritizes Crypto Regulation Clarity for 2024
The Securities and Exchange Commission (SEC) Chair Gary Gensler has identified clarifying cryptocurrency regulation as a top priority for this year.
On Wednesday, Gensler announced on X (formerly Twitter) his intention to provide regulatory clarity to investors through Project Crypto, a collaborative effort with the Commodity Futures Trading Commission (CFTC).
He outlined key objectives, including combating fraud, enhancing investor protection, and streamlining disclosure requirements.
As the SEC signals its commitment to refining crypto policies, market participants are closely watching for potential shifts in the U.S. regulatory landscape.
BlackRock: 1% Crypto Allocation in Asia Could Trigger 2 Trillion USD Inflow
BlackRock, the world’s largest asset manager, projects that a mere 1% increase in cryptocurrency allocation within Asian investment portfolios could unleash a 2 trillion USD influx.
On Wednesday, CoinDesk reported that Nicholas Peach, head of BlackRock’s Asia-Pacific division, spoke at the Consensus Hong Kong 2026 event. He noted that 2 trillion USD represents about 60% of the current crypto market cap, emphasizing that even a small shift in asset allocation could catalyze significant market innovation.
Peach observed growing acceptance of crypto exchange-traded funds (ETFs) among Asian institutions, with some advisory firms now recommending a 1% portfolio allocation to digital assets.
JPMorgan: Institutional Inflows to Drive Crypto Prices Higher in 2024
Global investment bank JPMorgan predicts that increased institutional investor inflows will bolster cryptocurrency prices this year.
On Wednesday, CoinDesk reported that Nikolaos Panigirtzoglou, a JPMorgan strategist, expects fund inflows into the crypto market to accelerate in 2024. He emphasized that this growth will be spearheaded by institutional investors rather than retail traders or digital asset treasury (DAT) firms.
Panigirtzoglou added that the potential passage of the Clarity Act in the U.S. could further accelerate fund inflows, contributing to a bullish outlook for the crypto market this year.