On Wednesday, Bitcoin surpassed $24,000 amid a broader recovery in the cryptocurrency sector, which has seen the global market valuation reach $1 trillion. Over the last seven days, the leading cryptocurrency has surged by more than 23%.
Bitcoin Pumps Past $24k Threshold
The bull run barely got started. For the first time in more than a month, Bitcoin exceeded the $24,000 threshold. Investors can exhale with relief after nearly three months of “extreme fear.” On Wednesday, BTC reached a record high of $24,120, increasing by 8% in only one day and trading at levels not seen since mid-June.
TradingView reports that the price of one bitcoin is currently $24,120.30. The trading volume over a 24-hour period is $49.929,803,913. The value of Bitcoin has climbed by 7.97% over the previous day.
BTC/USD trades above $24k. Source: TradingView
Bitcoin investors hope that the Fed will adopt a more accommodating approach at its following policy meeting. Risky assets like stocks and cryptocurrencies have been considerably impacted by the US central bank’s tightening monetary policy. Since the beginning of 2022, the price of bitcoin has decreased steadily by about 50%.
After an incredible 73 days, BTC finally left the “extreme fear” zone on Wednesday. The increase is related to BTC’s weekly gain of 19%. As bulls get back into the market, the trend restarts. The level of “extreme fear” on the Fear and Greed Index has soared to just “fearful.” In comparison to the existing index score of 31, it has drastically increased.
Related Reading | The Worst May Be Over As Crypto Market Adds More Than $100 Billion
On a scale of 0 to 100, the Fear and Greed Gauge, a sentiment index, rates the general crypto market’s present frame of mind. This Index is derived in part from statistics on volume and dominance from the main Bitcoin exchange.
According to data source Santiment on Twitter, traders are shifting their strategies and many are now concentrating on a long-term breakout of the cryptocurrency. The current pattern can be a sign of FOMO (FOMO).
Traders are changing their tune and are smelling a long-term breakout after a dominant #Bitcoin Tuesday. With the #1 market cap asset in #crypto surging, the ratio between $BTC #longs and #shorts is at its highest point since early May. Watch for #FOMO. https://t.co/4PcBhoKywd pic.twitter.com/dSPmazk1S1
— Santiment (@santimentfeed) July 19, 2022
FED May Raise Rates
The Federal Reserve is anticipated to hike rates at its upcoming meeting, although this time the rate increase will be modest, at 75 basis points as opposed to 100.
When the price of a cryptocurrency rises above $22,700, it has regained its 200-week moving average and laid the technical foundation for a “trend reversal.” In the meantime, traders are betting that the worst of a severe market panic caused by issues with liquidity at several significant crypto businesses has passed.
Matt Weller, global head of market research at Forex.com wrote:
“Like many risk assets, the crypto market is benefitting from investors ratcheting down their expectations for the Fed’s peak interest rate this cycle to around 3.75% around the end of the year.”
The current bear market, however, may last for another 250 days, according to Grayscale’s “Bear Markets in Perspective” report. After Bitcoin recorded a daily close above its current range, traders expect the price of BTC to rise into the $27,000 to $32,000 region.
Related Reading | Bitcoin Dominance Dives As Ethereum Takes Up More Space
Featured image from iStock Photo, charts from TradingView.com