By Mark Ackman
The crypto market, more specifically Bitcoin has been basking in the glory since its popularity increased due to the ongoing financial crisis.
Crypto Fear and Greed Index
People’s attitude towards the cryptocurrency market is very optimistic currently. Around sixteen months ago Bitcoin reached its highest-ever value and it’s since that time that sentiments around the token have been positive.
The Crypto Fear and Greed Index has hit its highest index score this year, reaching levels not seen since Bitcoin posted its all-time high in November 2021.
This year the Crypto Fear and Greed Index reached its highest core and reached levels that Bitcoin hasn’t experienced since its all-time high. Bitcoin had posted about the highest value it ever reached back in November of 2021.
The Crypto Fear and Greed Index is used to gauge the sentiment of the cryptocurrency market by asses various factors. These factors vary from trading volume to surveys to price volatility to social media activity.
Social media activity is also important because it is essential to know what enthusiasts and critics have to say about it online. The index ranges from 0 to 100, with closer to 0 indicating fear and closer to 100 implying greed.
With this index, investors and traders have a better idea of the market as it offers an overall assessment of the crypto market sentiment.
The Crypto Fear and Greed Index facilitate investors and traders in making rational and informed investment decisions.
Crypto Market Placed Within “Greed” Territory
Yesterday the score on the Crypto Fear and Greed Index was 68 which places the market within the Greed range.
This index provides a numerical representation of the current sentiments and opinions towards the overall cryptocurrency market, with the maximum score being 100.
According to some sources, 66 has been the highest score recorded since November of 2021 and now it’s touched 68. The score of 66 at that was recorded shortly after Bitcoin reached its all-time high of more than $69,000.
Following the downfall of the Silicon Valley Bank, Silvergate Bank, and the like has positively affected the Bitcoin trade. As a result of the disruptions in the conventional banking system, there has been a positive outlook toward crypto tokens.
Based on some reported data, Bitcoin has experienced an increase of approximately 27.8% in value over the past week. It has in fact surpassed the $28,000 cap which is the first time it has done so since mid of 2022.
Analysis of the Bitcoin Market
According to an analysis by Markus Thielen, there is potential for a further increase in the value of Bitcoin. The head of the financial services, Matrixport noted that this was because the liquidity story remained advantageous for Bitcoin.
Theilen while changing the market prediction for the short term has come up with a target figure of $36,000 for June 2023. They have also made a forecast for the end of the year, predicting the price to be $45,000.
At the same time, the CEO of an investment company Capriole, Charles Edwards has made a forecast for the price of Bitcoin that is even more ambitious. According to his predictions, the price of Bitcoin will touch $100,000.
However, he does warn investors that chart patterns often falter and therefore, shouldn’t be solely relied on to manage and plan their investments.
Last week the CEO of Messari made a somewhat similar prediction about the value of Bitcoin at a value of $100,000. Messari is a crypto analytics company that was founded by Ryan Selkis who is a well-known crypto enthusiast and supporter.
He even opined that the current financial failures and the fed’s monetary policy will observe an increase in crypto investment.
Most of the analyses hold the traditional financial system and the fed’s monetary policy responsible for cryptocurrencies’ incessant surge. However, the conventional market’s loss is the crypto market’s gain as the latter currently enjoys a high level of optimism