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Bitcoin surges past $24K as crypto`s Fear and Greed Index shifts to 31

Bitcoin
TL;DR Breakdown
  • Bitcoin soared to a price of $24,120 Wednesday, up about 8% in 24 hours and at levels not seen since mid-June.
  • Cryptocurrency Fear and Greed Index went from “extreme fear” to “fear,”- 31/100.
  • The global market cap stands at $1.07 trillion.

The bull run has just begun. Bitcoin breached the $24,000 mark in more than a month for the first time. After nearly three months of “extreme fear,” investors can take a large breath of relief. BTC rose to a record high of $24,120  on Wednesday, up 8% in 24 hours and trading at levels not seen since mid-June.

According to CoinMarketCap, the current price of Bitcoin is $24,120.30. It has a 24-hour trading volume of $49,929,803,913. In the last 24 hours, Bitcoin has increased in value by 7.97%. Ethereum‘s current price is $1,608.41. It has a trading volume of 24,204,429,550 USD in the last 24 hours.

In the past 24 hours, Ethereum has appreciated 4.02%. The overall crypto market cap has surpassed $1 trillion for the first time since 8 January 2022. The worldwide crypto market cap is currently at $1.07T, up 4.86% over the prior day.

Bitcoin registers the start of what could be the next bull run

Traders took solace in the belief that the Fed would take a more accommodative stance at its next policy meeting. The effects of tighter monetary policy from the US central bank have significantly impacted risky assets like equities and cryptocurrency. Bitcoin has continued to fall by around 50% since the start of 2022.

On Wednesday, BTC finally broke free from the “extreme fear” zone after a staggering 73 days. The increase is linked to a 19% weekly boost in BTC. The trend resumes as bulls return to the market. The Fear and Greed Index has shot up from “extreme fear” to merely “fearful.” It has increased dramatically from the current index score of 31.

Bitcoin surges past $24K as crypto`s Fear and Greed Index shifts to 31 1

The Fear and Greed Index is a sentiment index that rates the current mood of the overall crypto market on a scale of 0 to 100. Volume and dominance data from Bitcoin’s primary exchange are used in part to calculate this Index.

Traders are changing their tune, with many now focusing on a long-term breakout of the cryptocurrency, according to data provider Santiment on Twitter. The present trend could indicate Fear of Missing Out (FOMO).

The Federal Reserve is expected to raise rates at its next meeting, but the pace of that increase will be slower this time around, with 75 basis points rather than 100.

Cryptocurrencies were supposed to provide an alternative source of value uncorrelated to existing financial markets. When institutional money flooded into digital assets, that idea failed to materialize when the Fed began raising interest rates and investors sold equities.

A rally beyond $22,700 indicates that the cryptocurrency has reestablished its 200-week moving average, establishing the technical groundwork for a “trend reversal.” Traders are meanwhile banking on the fact that the worst of an intense market panic sparked by liquidity problems at several large crypto companies has subsided.

On the other hand, Grayscale’s “Bear Markets in Perspective” report claims that the current bear market may continue for another 250 days. Traders anticipate that BTC price will move into the $27,000 to $32,000 range now that Bitcoin has established a daily close above its current range.

Crypto whales point to a different kind of bull run

The value of bitcoin and other cryptocurrencies continued to rise this week, with ether increasing by more than 1%. Ether is also up more than 40% in the last seven days. It has been boosted by optimism over a major network upgrade known as the “Merge.” 

The upgrade, which would transition ethereum away from environmentally questionable crypto mining to a more energy-efficient system, is expected to be completed by September 19. For the bulls, the next goal is the “Neutral” zone, which begins at 46/100. The Index last resided in the “Neutral” region on April 6, when bitcoin sold at $45,000.

The cryptocurrency winter has a habit of flipping even the most elevated bitcoin bull believers bearish in a short amount of time. On 19 July 2017, this reality was made evident. Following Bitcoin’s rebound over $23,000, widespread warnings emerged that the price rise was only a false dawn before the market dropped further.

While the prospect of future lows is uncertain, some experts believe that this bull run is unique. Trader XM, a pseudonym used by a trader on the financial market, delivered a pointed message with the phrase “this time is different.”

The fact that Bitcoin is continuing to trend lower and then reverse course suggests that there is still potential for more gains in the near term. Bitcoin’s market value has increased by almost $74 billion, or 19.63 percent, in a single week since July 13, when it stood at $377 billion.

On Wednesday, the stock market responded favorably to bitcoin’s success. MicroStrategy (MSTR) rose 18% to $267.17, while Coinbase (COIN) climbed 12.2 percent to $65.83, showing investors’ faith in cryptocurrencies is growing stronger by the day.

Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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