After what can be described as an exceptional week for the crypto market, Bitcoin has finally surpassed $31,000 for the first time in almost one year. This comes at a time when investor sentiment has recovered significantly and money is flowing into the industry again.
Bitcoin clears $31,000 for the first time in 10 months
In the early hours of Friday, the bitcoin price surpassed $31,000. The last time a digital asset sat at that price was in June 2022, two months before FTX’s implosion. The months leading up to this recovery were full of uncertainty but the result left a bullish aftertaste on investors’ mouths.
Just this week, Bitcoin went from trading around the $27,000 level to moving above $30,000 which fueled the digital asset’s rally. It also translates to a 10% increase in the last week as well, Pushing the market value of the asset to about $600 billion.
BTC rallies to new 10-month high | Source: BTCUSD on TradingView.com
Moreover, BTC is now up nearly 100% in 2023 alone after starting the year at the $16,000 level. With BTC trading well above its year-to-date low of $23,721, the current bullish momentum is likely to continue, although a small correction is not out of the question given the rate of growth over the past couple of days.
Cryptocurrency investors are still very greedy
As Bitcoin continues to recover, cryptocurrency investors are getting greedier. According to the Index of fear and greed – An indicator that measures investor sentiment in the market using various metrics – Bitcoin investors are still very greedy.
The scale from 0-100 currently sits at 68, which translates to greed in the market. At times like these, rallies tend to continue as investors flock to the market to take advantage of the increased prices.
Investors remain very greedy | Source: alternative.me
This was the case in the recent bull market that lasted from 2020-2021 as prices kept rising and investors got greedier. Looking at the historical chart of the Fear and Greed indicator, it shows a continuation until the indicator reaches the level of extreme greed, at which point prices start to peak and prices start to fall.
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If this historical trend is anything to go by, the indicator still has a long way to go, and that means prices will likely continue to rise from here. However, there is always the possibility of a crash like what happened in March 2022 when the index recovered to the 60th degree before falling back and taking the market with it.
Currently, BTC is still holding its value above the $30,500 support. It witnessed a 17% increase in its trading volume over the past 24 hours, to reach $21.7 billion.