Bulls take the lead as Bitcoin investor sentiment recovers
Bitcoin investor sentiment had fizzled after the implosion of the FTX crypto exchange. This had sent market sentiment to one of the lowest points for the year 2022, falling deep into ‘Extreme Fear’ territory. However, as the market has recovered over time, investors in the area have been able to take stock of losses and adjust, with the positive CPI report increasing faith in the market. Now sentiment has seen a marked upturn as the bulls get stronger.
Bitcoin investors are left with extreme fear
Over the past couple of days, bitcoin investor sentiment had steadily improved. Data from the Fear & Greed Index shows that while the market ended last month in extreme fear, the new month has seen better levels. A six-point gain from November 24 has put the index at 30, bringing the market comfortably out of extreme fear.
Now, while this is an improvement from last month’s numbers, it doesn’t mean bitcoin is out of the woods just yet. Investors are still very cautious about putting money into the market, as evidenced by the low 30 out of 100 score on the Fear & Greed Index, but nevertheless it marks a slow return to faith in the market.
Investor sentiment improves in new week | Source: alternative.me
Bitcoin’s brief recovery above $18,000 on Tuesday was obviously the driver behind the three-point gain recorded between yesterday and today. So the digital asset needs to maintain its gains to keep sentiment consistent at these levels. However, there needs to be a significant increase in bitcoin’s price to see higher levels or even to see the greed area.
Crypto market recovery holds
In the last 24 hours, the total crypto market capitalization has already added more than $30 billion. This is a result of bitcoin’s recovery and then the rest of the crypto market rallying behind it. Currently, many of the cryptocurrencies are still holding on to a good portion of their gains, enabling the crypto market cap to stay above the $820 billion market cap.
Bitcoin has already made a 3.96% gain in the last day as it continues to hold above $17,700 at the time of writing, as well as others like Ethereum still trading above $1,300n with 5.17% in 24 hours. It is clear that the digital assets are still on a high after yesterday’s recovery.
BTC down more than 70% from ATH | Source: BTCUSD on TradingView.com
On a year-to-date basis, however, the crypto market hasn’t done so well, losing more than $1 trillion from its peak in 2022 alone. With only about two weeks left in the year, it looks like the market is going to ride it out on a low note, with bitcoin closing below $20,000.
