Key Points
- The crypto market sentiment is shifting towards greed, indicated by the fear and greed index entering the 60 zone.
- Bitcoin’s bullish momentum is driving this shift, with 95% of Bitcoin holders currently in profit.
The sentiment in the cryptocurrency market is experiencing a significant change as major digital assets sustain their upward trend.
Data from CoinMarketCap indicates that the crypto fear and greed index has moved into the 60 zone, suggesting a slightly greedy market environment.
Crypto Market’s Bullish Momentum
This marks the first time in six weeks that the crypto market has ventured into the greed zone, previously observed on July 31. A substantial decrease occurred in early August when the price of Bitcoin (BTC) fell below the $54,000 threshold.
The market-wide recovery that recently took place is largely due to Bitcoin’s bullish momentum. Since October 10, the price of BTC has been consistently rising, registering a 12% increase over the previous week. On October 16, Bitcoin momentarily reached a two-month peak of $68,375.
Despite a minor adjustment, Bitcoin has risen by 0.3% in the last 24 hours and is currently valued at $67,350.
Bitcoin Holders in Profit
Data from IntoTheBlock reveals that 95% of Bitcoin holders are now making a profit, with 3% nearing their initial investment and 2% experiencing losses. Consequently, it would be normal to see short-term profit-taking due to the high number of holders in profit.
However, the number of daily active addresses in profit has decreased from 112,780 to 91,160 unique wallets between October 15 and 16. This reduction suggests that some investors might be targeting a further price increase instead of immediately realizing profits.
One of the primary drivers behind Bitcoin’s bullish momentum is the growing demand for spot BTC exchange-traded funds in the U.S. These investment products have seen a net inflow of over $1.6 billion in the last four days, including $458.5 million on October 16 alone.
