Bitcoin Taps $31,000 For The First Time Since 2022 As Investors Turn Greedy
After what can be described as a phenomenal week for the cryptocurrency market, Bitcoin has finally crossed $31,000 for the first time in nearly a year. This comes at a time when investor sentiment has dramatically recovered and money is pouring into the industry once again.
Bitcoin releases $31,000 for the first time in 10 months
In the early hours of Friday, Bitcoin price crossed $31,000. The last time the digital asset was at that price was in June 2022, a few months before the FTX implosion. The months prior to this recovery were marked by uncertainty, but the result left a bullish taste in investors’ mouths.
This week alone, Bitcoin has gone from trading around the $27,000 level to above $30,000, which has solidified the digital asset’s recovery. It also translates to an increase of more than 10% over the last week, pushing the asset’s market cap to $600 billion.
BTC rallies to new 10-month high | Source: BTCUSD on TradingView.com
Furthermore, BTC is now up around 100% in 2023 alone after starting the year at the $16,000 level. As BTC is trading well above the year-to-date low of $23,721, the current bullish momentum is more likely to continue, although a minor correction is not out of the question given its rate of growth over the past few days.
Crypto Investors Still Too Greedy
As Bitcoin continues to rally, cryptocurrency investors are getting even more greedy. According to the Fear & Greed Index – an index that measures investor sentiment in the market using various metrics – Bitcoin investors are still very greedy.
The scale that goes from 0 to 100 is currently at 68, which translates to greed in the market. At times like this, rallies tend to continue as investors rush into the market to take advantage of rising prices.
Investors remain very greedy | Source: alternative.me
This is what happened in the last bull market that lasted from 2020-2021, where prices continued to rise and investors became greedier. Looking at the historical chart of the Fear & Greed Index, it shows a continuation until the index reaches the Extreme Greed level, at which point the market peaks and prices begin to fall.
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If this historical trend is anything to go by, the index still has a long way to go and that means prices are likely to continue rising from here. However, there is always the possibility of a drop like the one that occurred in March 2022, when the index rebounded to 60 points before dropping again and taking the market with it.
For now, BTC is still holding its value above the $30,500 support. It recorded a 17% increase in its trading volume over the last 24 hours, totaling $21.7 billion.