The cryptocurrency market is currently experiencing a
bullish atmosphere, with assets like Bitcoin (BTC) continuing to hold onto its
recent gains. This sentiment is mirrored by the Fear & Greed Index, which
has been reaching record highs.
On January 30th, the Fear & Greed Index, compiled by
Coinglass, registered a reading of 61 - indicating a great level of greed, the
highest since the crypto market was in a bull run in November 2021.
The sentiment reading has gone up significantly since December 2022, when the crypto market was experiencing a bear market.
It is evident that the crypto market has taken a turn
towards a state of high optimism, as investors are displaying high expectations
in the potential of cryptocurrencies in the future.
Consequences of Fear & Greed Index
It is noteworthy that the Fear & Greed Index is composed
of various components, for example, volatility, market momentum, social media
involvement, and trading volume. When the reading is higher, the index is
likely trending towards greed, with plenty of buyers in the market. On the
other hand, lower readings indicate that fear has taken over the market.
The bullish sentiment is mirrored in the behaviour of assets
like Bitcoin, which managed to reclaim the $23,000 mark after acting as a major
obstruction to progress.
Nevertheless, it is essential to be prudent when considering
the current degree of avarice, as the market is still uncertain. For instance,
technical indicators point to the fact that Bitcoin might be facing in one
week. Simultaneously, it is likely that a possible bullish golden cross formation
will take place in early February.
Meanwhile, a machine learning program is forecasting a
probable sustained climb in the cost of Bitcoin in the near future. As per an
article by Finbold, the machine learning algorithms at PricePredictions anticipate that the digital currency might reach
$24,342 on February 28, 2023.
Cryptocurrency has seen an impressive surge of almost 40% in
2023 and this industry is still highly dependent on macroeconomic factors.
Later this week, the Federal Reserve meeting will reveal their decision on
interest rate hikes and this will be a topic of great interest.
Due to the decline in inflation, the Federal Reserve could
choose to adjust their interest rate policy.
Exploring the Value of Bitcoin
The first-ever cryptocurrency is presently trading at $23,262, exhibiting a growth of almost 2% within the last seven days.
In the end, even with the attempts by bears to gain control
of Bitcoin, the cryptocurrency has demonstrated its strength. Right now,
experts suggest that it may reach back up to $28,000. [pc]
source: Finbold
0 Komentar