Bitcoin Inches Away From $60,000 As BTC Hits ‘Extreme Greed’

After rising 5% within the final day, Bitcoin (BTC) is now rapidly nearing the coveted $60,000 mark. It’s because investor curiosity within the largest cryptocurrency on this planet has reached ranges final seen throughout a 2021 growth, bringing it very near its all-time excessive.

Pre-Halving Rally? Bitcoin Nears $60K

The rise in value coincided with a surge in demand as spot bitcoin exchange-traded funds (ETFs) achieved buying and selling volumes of over $3 billion cumulatively on Tuesday. Moreover, different merchants cited the anticipated April bitcoin halving because the supply of a recent narrative that spurs a pre-halving improve.

The world’s most sought-after digital asset’s market cap has now reached $1.2 trillion, Coingecko knowledge reveals.

Bitcoin quick approaching the $60K degree. Supply: Coingecko

Joel Kruger, a market strategist at LMAX Group, said that the market is “that rather more decided to see the extent retested and shattered” now that bitcoin is that a lot nearer to retesting its report excessive.

Due largely to the euphoria surrounding a lot of spot bitcoin exchange-traded funds that started buying and selling in January, bitcoin has elevated by as a lot as 16% this week and 35% to date this 12 months.

Bitcoin market cap at present at $1.16 trillion. Chart: TradingView.com

Bitcoin reached its highest degree since November 2021 when it surpassed $59,000. The target of the current surge is to see if the worth can rise to $68,790, its all-time excessive. Six months earlier than a surprising crash in 2022, that peak occurred.

In response to Coinglass data, futures bets on decrease bitcoin costs have taken on $25 million in liquidations since Asian morning hours, which may have contributed to the worth rise.

‘Excessive Greed’ For BTC

Within the meantime, on Wednesday, the Worry and Greed Index—a sentiment indicator that measures how shortly asset motion deviates from underlying fundamentals—flashed 82, signaling “extreme greed” and hitting its highest degree in additional than a 12 months.

Supply: Alernative.me

A scale of 0 to 100 represents essentially the most anxious and 100 is essentially the most grasping on the index. In response to the index’s creators, an setting that’s hungry is indicative of exuberance and reveals the market is due for a correction.

Because the ETFs began buying and selling on January 11, Bitcoin has elevated by 24%. The present upward development in pricing, based on Bitwise Asset Administration analyst Ryan Rasmussen, is merely the start.

“The demand that ETFs are producing for the spot bitcoin market is considerably higher than the every day manufacturing of recent provide,” he said.

Ultimately, Rasmussen said:

“What we’re witnessing is cryptocurrency type of rising from the ashes of the 2022 market.”

The quantity of bitcoin trades made up to now this quarter has exceeded the totals for every quarter of 2023 for a similar interval. Main cryptocurrency buying and selling platforms like Coinbase International (COIN) and Robinhood (HOOD) have benefited drastically from this exercise. Between the beginning of January and now, these shares have elevated by 27% and 31%, respectively.

Featured picture from Pexels, chart from TradingView

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