Bitcoin loses $31,000 for first time since 2022 as investors get greedy
A young boy dressed as a businessman with a big pile of money. There are $100 bills and money bags full of cash on his desk.
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 a year. This comes at a time when investor sentiment has recovered drastically and money is flowing into the industry again.
Bitcoin clears $31,000 for first time in 10 months
In the morning hours on Friday, the price of Bitcoin passed $31,000. The last time the digital asset settled at this price was back in June 2022, a couple of months before the FTX implosion. The months before this recovery have been characterized by uncertainty, but the result has left a bullish aftertaste in investors’ mouths.
Just this week alone, Bitcoin has gone from trading around the $27,000 level to moving above $30,000, bolstering the digital asset’s rally. It also means an increase of over 10% in the last week as well, pushing the asset’s market value towards $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 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 more likely to continue, although a slight correction is not out of the question given the growth rate of the past couple of days.
Crypto investors are 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 that goes from 0-100 is currently at 68, which means greed in the market. At times like these, rallies are more likely to continue as investors flock to the market to take advantage of rising prices.
Investors remain very greedy | Source: alternative.me
This was the case in the last bull market that lasted from 2020-2021, where prices continued to rise 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, when the market peaks and prices start 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 prices are likely to continue rising from here. However, there is always the possibility of a crash like the one experienced in March 2022 when the index rebounded to a score of 60 before falling back and taking the market with it.
Currently, BTC is still maintaining its value above the $30,500 support. It saw a 17% increase in trading volume in the last 24 hours, bringing it to $21.7 billion.
