BTC's 'Greed' Index Returns to Neutral, Price Could Settle to $40K?

<p>&nbsp;"Hmm, I don't know why the fear is going up, but that's an opportunity for us to get more BTC, right?"</p><p><br /></p><p>Just days after the approval of the spot Bitcoin (BTC) ETF, the price of the cryptocurrency king is now hovering below $43,000 as the Fear &amp; Greed Index returns to neutral levels seen in October 2023.</p><p><br /></p><p>The exchange has taken place less than a week after the Fear &amp; Greed Index hit "extreme greed" of 76 as the entire crypto market expects spot BTC to be approved by the Securities and Exchange Commission (SEC).</p><p><br /></p><p>There is no denying that BTC rose to $49,000 when the SEC approved the product, but the price began to fall as low as $41,500 by January 12, 2024 as traders took profits.</p><p><br /></p><p><br /></p><p>Additionally there has been uncertainty surrounding the spot BTC ETF since its launch following conflicting performance data and a lack of information on further details for the new investment.</p><p><br /></p><p>Although BTC could be exposed to profit-taking selling pressure in the short term, lower US treasury yields and interest rate cuts by the Federal Reserve (Fed) could cause limited downside risk.</p><p><br /></p><p>According to bitBank, BTC can trade at $40,000 in the near future while 10x Research analyst Markus Thielen expects the price to plunge to $38,000.</p><p><br /></p><p>Additionally, Alex Kuptsikevich who is an FxPro analyst views a price correction at $40,000 as a common correction limit considering BTC's performance of over 150% compared to 2023.</p><p><br /></p><p>As of this writing, BTC price has surged by 1.50% to $42,588 in the last 24 hours with a market cap of $834 billion but is still down 9.35% over the past week.</p>