After what can be described as a phenomenal week for the crypto market, Bitcoin has finally crossed $31,000 for the first time in almost one year. This comes at a time when investor sentiment has recovered drastically and money is pouring into the industry once more.
Bitcoin Clears $31,000 For The First Time In 10 Months
In the early hours of Friday, the price of Bitcoin crossed $31,000. The last time that the digital asset sat at this price was back in June 2022, a couple of months before the FTX implosion. The months preceding this recovery have been wrought with uncertainty but the outcome has left a bullish aftertaste in the mouth of investors.
Just this week alone, Bitcoin has gone from trading around the $27,000 level to moving above $30,000 which solidified the rally for the digital asset. It also translates to an over 10% increase in the last week as well, pushing the asset’s market cap toward $600 billion.
BTC rallies to new 10-month high | Source: BTCUSD on TradingView.com
Furthermore, BTC has now risen around 100% in 2023 alone after starting out the year at the $16,000 level. As BTC is trading well above its year-to-date low of $23,721, the present bullish momentum is more likely to continue, although a small correction is not out of the question given its growth rate over the last couple of days.
Crypto Investors Still Very Greedy
As Bitcoin continues to recover, crypto investors are getting even greedier. 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 which goes from 0-100 currently sits at 68, which translates to greed in the market. At times like these, rallies are more inclined to continue given that investors flock to the market to take advantage of the growing prices.
Investors remain very greedy | Source: alternative.me
This was the case in the last bull market that lasted from 2020-2021 where prices kept going up the greedier investors became. 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, then the index still has a long way to go, and that means that prices will likely continue to rally from here. However, there is always the possibility of a crash like what was experienced in March 2022 when the index recovered to a score of 60 before tumbling back down and taking the market with it.
For now, BTC is still maintaining its value above the $30,500 support. It saw a 17% increase in its trading volume in the last 24 hours, bringing it $21.7 billion.