Crypto Investors Get Greedy As Bitcoin Breaks Above $66,000

The crypto market is awash with greed again after bitcoin (BTC)’s latest rally to a three-week high of over $66,000.

Alternative.me data shows that the Crypto Fear and Greed Index is currently at 74, indicating a period of greed among digital asset investors.

Crypto investors are greedy

The rise in crypto market sentiment towards greed follows a period of neutrality among market participants. CryptoPotato reported earlier this month that the Fear and Greed Index stood at 54 for the first time since January, representing neutral sentiment among investors, while BTC was trading between $57,000 and $60,000 .

At the time, BTC and the broader crypto market experienced increased volatility and a massive wipeout of total market cap. At one point, BTC fell below its crucial support levels, crashing 11% in 36 hours.

The crash drained the crypto market of more than $200 billion, leaving a trail of ruins among altcoins and meme coins. In particular, digital asset investment funds were hit, with some networks seeing consecutive weeks of exits.

However, the tide has turned this week, with the bulls taking the reins on Monday. After hovering around $61,000 over the weekend, BTC rallied to $63,000 on Monday and then persisted to $64,000 on Wednesday. At the time of writing, the leading cryptocurrency was changing hands at $66,200, up 5% over the past seven days.

Bitcoin’s upward trajectory has extended into the spot exchange-traded fund (ETF) market, with inflows rising to a multi-week high. Flows into ETFs hit $303 million on Wednesday, a figure last seen on May 3. Yesterday, the funds also recorded inflows totaling $257 million. The two consecutive days of substantial inflows contrast with flows seen in the past two weeks, which have mostly been below $100 million.

what happens next

For the uninitiated, the Fear and Greed Index determines investor sentiment by analyzing various factors, including market momentum, volatility, bitcoin dominance, trends, and social media. On a scale of 0 to 100, 0 indicates extreme fear, 50 indicates neutrality, and 100 means extreme greed.

With the index at a greedy point, a further market rally could push it into the extreme greed zone. Unfortunately, this would leave room for a correction, which is typical in crypto markets.

Regardless, increased liquidity entering the market could push BTC out of its current price range to a higher level.

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