Bitcoin, up 70% this year, retreats above $28,000
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Bitcoin showed signs of resilience on Wednesday, throwing out tremors from The US Commodity Futures Commission’s lawsuit against the crypto exchange Binance to recover and go above $28,000. The world’s largest cryptocurrency by market capitalization was up 6% in the last 24 hours to around $28,400. It has added nearly 72% this year, with its best quarterly gain in two years. Just three months ago, some experts were mulling the possibility of bitcoin falling as low as $12,000 this quarter, after its valuation had fallen 76% since November 2021. The rebound has put bitcoin ahead of ether, the second-largest cryptocurrency by market capitalization , which appears on the track for a 50% quarterly gain. Gold has increased by over 7%, while the technology-heavy Nasdaq Composite index has risen 15%.
Crypto Fear & Greed Indexa calculation that aims to measure the current sentiment in the market, fell to 59 on Tuesday, down from a nearly 18-month high of 68 reached a week ago, according to data from alternative.me. Readings above 50 indicate that market sentiment has moved into the “greed” stage, while those below 50 indicate “fear”. The index had not been as high as 68 since November 2021 when bitcoin hit a record near $69,000. Although the gauge has fallen since last week to 59, it remains in the “greed” zone, suggesting that investor sentiment remains bullish for now. The rebound to “greed” this year comes as crypto prices jumped despite regulatory crackdowns and macroeconomic fears.
With the ink still drying on Binance lawsuitCFTC Chairman Rostin Behnam reiterated Tuesday during a congressional hearing that he believes ether is a commodity — a potentially controversial claim that differs from what his counterpart at the Securities and Exchange Commission has said. A lawmaker on the House Appropriations Committee asked Behnam during a budget hearing Tuesday if he thinks ether should be on that list. “I think they’re a commodity,” Behnam said. “And because they’re listed on CFTC exchanges, we have a regulatory relationship—obviously with the derivatives market and that product, but the underlying market as well.”
Today’s chart
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The chart shows daily changes in the DeFi Dominance Index, which measures the market capitalization of a basket of top decentralized finance coins as a percentage of the total cryptocurrency market.
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The index fell from 5% to 4% in March, as regulatory fears and banking sector turmoil prompted investors to park money in bitcoin, the leading cryptocurrency by market capitalization.
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“DeFi dominance at key support (4%) with technicals indicating the sector is oversold,” said Lewis Harland, a portfolio manager at Decentral Park Capital.
