Bitcoin’s value surpassed $24,000 on Wednesday amid a wider recovery in the cryptocurrency industry, which has seen its global market valuation surpass $1 trillion. The leading cryptocurrency has seen a 23% increase in value over the past seven days.
Bitcoin Price Pumps Above $24k Threshold
The bull run just barely started. Bitcoin reached the $24,000 threshold for the first-time in more than a year. 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 the current price of one Bitcoin is $24,120.30. In 24 hours, the trading volume was $49.929.803,913. Bitcoin’s value increased 7.97% in the past day.
BTC/USD trades at $24k and above Source: TradingView
Bitcoin investors are hopeful that the Fed will be more accommodating at its next policy meeting. Risky assets like stocks and cryptocurrencies have been considerably impacted by the US central bank’s tightening monetary policy. Bitcoin’s price has dropped by around 50% every year since 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%. The market trend is reversing as more bulls enter 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.
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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 was derived partly from statistics regarding volume and dominance on the main Bitcoin Exchange.
According to Santiment’s Twitter data, traders are shifting their strategies. Many are now focused on the long-term rise of the cryptocurrency. This could be FOMO (FOMO).
🥳 After a dominant trend, traders are now seeing a long-term breakout. #Bitcoin Tuesday. With the #1 market cap asset #crypto Surging, the ratio of $BTC #longs #shorts It is at its highest level since May early. Keep an eye out #FOMO. https://t.co/4PcBhoKywd pic.twitter.com/dSPmazk1S1
— Santiment (@santimentfeed) July 19, 2022
FED May Raise Rates
Federal Reserve will likely raise rates at its next meeting. However, this time, the increase will be minimal at 75 basis points instead of 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 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 current range on a daily basis.
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Featured image taken from iStock Photo and charts from TradingView.com