After what will be described as an exceptional week for the crypto market, Bitcoin has lastly crossed $31,000 for the primary time in nearly one 12 months. This comes at a time when investor sentiment has recovered drastically and cash is pouring into the trade as soon as extra.
Bitcoin Clears $31,000 For The First Time In 10 Months
In the early hours of Friday, the worth of Bitcoin crossed $31,000. The final time that the digital asset sat at this value was again in June 2022, a few months earlier than the FTX implosion. The months previous this restoration have been wrought with uncertainty however the end result has left a bullish aftertaste within the mouth of traders.
Just this week alone, Bitcoin has gone from buying and selling across the $27,000 stage to transferring above $30,000 which solidified the rally for the digital asset. It additionally interprets to an over 10% enhance within the final week as effectively, pushing the asset’s market cap towards $600 billion.
BTC rallies to new 10-month excessive | Source: BTCUSD on TradingView.com
Furthermore, BTC has now risen round 100% in 2023 alone after beginning out the 12 months on the $16,000 stage. As BTC is buying and selling effectively above its year-to-date low of $23,721, the current bullish momentum is extra more likely to proceed, though a small correction shouldn’t be out of the query given its development charge over the past couple of days.
Crypto Investors Still Very Greedy
As Bitcoin continues to recuperate, crypto traders are getting even greedier. According to the Fear & Greed Index – an index that measures investor sentiment available in the market utilizing varied metrics – Bitcoin traders are nonetheless very grasping.
The scale which works from 0-100 presently sits at 68, which interprets to greed available in the market. At instances like these, rallies are extra inclined to proceed on condition that traders flock to the market to benefit from the rising costs.
Investors stay very grasping | Source: alternative.me
This was the case within the final bull market that lasted from 2020-2021 the place costs saved going up the greedier traders turned. Looking on the historic chart of the Fear & Greed Index, it reveals a continuation till the index reaches the Extreme Greed stage, at which level the market peaks and costs start to fall.
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If this historic development is something to go by, then the index nonetheless has an extended option to go, and that implies that costs will doubtless proceed to rally from right here. However, there’s all the time the potential of a crash like what was skilled in March 2022 when the index recovered to a rating of 60 earlier than tumbling again down and taking the market with it.
For now, BTC continues to be sustaining its worth above the $30,500 assist. It noticed a 17% enhance in its buying and selling quantity within the final 24 hours, bringing it $21.7 billion.
