The value of Bitcoin has surpassed $31,000 for the first time in over a year following what can only be described as a remarkable week for the cryptocurrency market. This occurs at a time when investor confidence has significantly improved and money is once again flowing into the sector.
Due to investors’ large bets on Bitcoin and other digital assets, many analysts believe the most recent spike to be the beginning of a new bull market. Some do warn, though, that the market is still quite erratic and that cryptocurrency investors should be aware of the hazards involved.
Bitcoin Price Surges Past $31,000 Milestone, Boosting Investor Confidence
During the early hours of Friday, the value of Bitcoin tapped $31,000, a price level not seen since June 2022 before the FTX collapse. Despite the preceding period of uncertainty, a series of measures have helped the digital asset market recover, leaving investors with an optimistic outlook.
Within this week, Bitcoin price has experienced a notable surge, rising from approximately $27,000 to surpassing $30,000, marking a significant increase in the digital asset’s value. This upward trend translates to an over 10% rise in just one week, leading to a boost in the asset’s market capitalization, which is nearing the $600 billion mark.
Additionally, BTC has already increased by about 100% in 2023 alone after beginning the year at a price of $16,000. The current positive trend is more likely to continue since BTC is currently trading far above its year-to-date low of $23,721, but a minor pullback is still possible given its recent growth pace.
Crypto Investors Remain Extremely Greedy
Cryptocurrency investors are becoming increasingly greedy as Bitcoin keeps rising. The Fear & Greed Index, which uses a variety of indicators to gauge investor mood in the market, indicates that crypto investors are still quite greedy.
Market greed is indicated by the scale, which ranges from 0-100, now sitting at 68. When prices are rising, investors are rushing to the market, which increases the likelihood that rallies will continue.
This was the situation during the last bull market, which ran from 2020 to 2021 when prices increased as investors’ greed increased. When the index reaches the Extreme Greed level, the market reaches its peak and prices start to decline, according to the historical record of the Fear & Greed Index.
The market still has a long way to go, so prices will probably continue to rise if this past trend is any indication. A fall like the one that occurred in March 2022, when the index rose to a score of 60 before falling once more and wiping out the market, is always possible.
BTC is still keeping its value above the $30,500 support level for the time being. Its trade volume increased by 17% during the previous 24 hours, reaching $21.7 billion.
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