Bitcoin reached $24,000 Wednesday in the face of a wider recovery within the cryptocurrency industry, which saw the market value reach $1 trillion. The leading cryptocurrency, Bitcoin has risen by over 23% in the past seven days.
The Bitcoin Threshold Exceeds $24k
Just barely did the bull run get started. Bitcoin crossed the $24,000 barrier for the first-time in over a month. 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 has reported that one bitcoin currently costs $24,120.30. In 24 hours, trading volumes totaled $49.929.803,913. Bitcoin’s value has increased by 7.97% in the last day.
BTC/USD Trades Above $24k TradingView
Bitcoin investors are hopeful that the Fed will be more flexible at its next policy meeting. Risky assets like stocks and cryptocurrencies have been considerably impacted by the US central bank’s tightening monetary policy. The price of Bitcoin has fallen by approximately 50% since the start of 2022.
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%. Trends are reestablished when bulls return into the market. 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.
The Worst May Be Over As Crypto Market Adds More Than $100 Billion| 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 derives its part from stats on Bitcoin volume and dominance.
Santiment’s Twitter data shows that traders are shifting their strategies, and are now more focused on the long-term rise of crypto. It could indicate FOMO (FOMO)
🥳The traders have begun to change their tune, and they are seeing the potential for a breakout long-term after a dominant signal. #Bitcoin Tuesday. The #1 asset by market capital in #cryptoThe ratio of the two has risen to $BTC #longsAnd #shortsThis is the highest position since May, when it was at its peak. Pay attention #FOMO. https://t.co/4PcBhoKywd pic.twitter.com/dSPmazk1S1
— Santiment (@santimentfeed) July 19, 2022
FED May Raise Rates
Federal Reserve expects to raise interest rates at the upcoming meeting. However, this increase in rate will not be as dramatic as 100 basis points.
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 the following:
“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. Trader expect Bitcoin’s price to climb to the $27,000-32,000 range after Bitcoin closed above its present range on a daily basis.
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Featured image taken from iStock Photo and charts from TradingView.com