The cryptocurrency market is experiencing a notable shift in sentiment as leading digital assets maintain their bullish trajectory. According to data from CoinMarketCap, the crypto fear and greed index has entered the 60 zone today, indicating a slight shift towards greedy market conditions.
Notable Market Trends
This marks the first time the crypto market has entered the greed zone in six weeks, with the last occurrence on July 31. A significant downturn took place in early August when Bitcoin’s price fell below the $54,000 mark.
Recently, the market has rebounded significantly, driven by Bitcoin’s bullish momentum. The price of Bitcoin has steadily increased since October 10, recording a remarkable 12% surge over the past week. On October 16, Bitcoin briefly reached a two-month high of $68,375.
Despite a minor correction, Bitcoin remains up 0.3% over the past 24 hours, trading at approximately $67,350 at the time of writing.
Profitability Among Bitcoin Holders
Data from IntoTheBlock indicates that 95% of Bitcoin holders are currently in profit, while 3% are near their initial investment, and only 2% are experiencing losses. Given this backdrop, short-term profit-taking could be expected due to the increased number of holders in profitable positions.
However, the number of daily active addresses in profit has declined from 112,780 to 91,160 unique wallets between October 15 and 16. This drop suggests that some investors may be opting to wait for further price increases rather than taking profits immediately.
Drivers of Bitcoin’s Bullish Momentum
A key factor contributing to Bitcoin’s recent rise is the growing demand for spot Bitcoin exchange-traded funds (ETFs) in the U.S. According to a report by crypto.news, these investment products saw a net inflow of over $1.6 billion over the past four days, with $458.5 million in inflows recorded on October 16 alone.
As the market shifts into a phase of greed, many investors will be watching closely for any signs of reversal or profit-taking strategies, while others remain hopeful for continued upward momentum.
Related topics:
Ripple vs. SEC: Insights into XRP Futures and the Bitnomial Case
Donald Trump Raises $7.5 Million in Crypto Donations for 2024 Election
Elon Musk Donates $75 Million to Boost Trump’s Campaign: Implications for Dogecoin
