Alex Dovbnya
Bitcoin's recent surge toward $45,000 has proven to be a critical juncture for investors who entered the market two to three years ago
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Contents
- Rise to an annual high
- Cautiously optimistic
The cryptocurrency market, known for its volatility, is currently witnessing the rise of Bitcoin towards a critical point: the $45,000 mark.
Far more than just a technical milestone, this threshold has deeper meaning for a significant portion of Bitcoin investors. This significance comes from the fact that, according to CryptoQuant's findings, this level corresponds to the average cost basis for those who invested in Bitcoin two to three years ago.
These investors, who represent approximately 16% of total Bitcoin supply and 33% of realized capitalization, are now at a crucial point as the price approaches their initial investment value.
Rise to an annual high
Recently, Bitcoin price hit a new annual high on the Bitstamp exchange, reaching $41,911. This upward move marks the first time this year that Bitcoin has surpassed $40,000. Analysts attribute this increase to a combination of factors, including increased expectations for the approval of a Bitcoin exchange-traded fund and speculation about possible cuts in US interest rates.
Meanwhile, open interest in Bitcoin perpetual futures on the Deribit exchange reached a yearly high of $740 million. This level of interest has not been seen since November 2021, when Bitcoin hit its all-time high of over $68,000.
Cautiously optimistic
Despite the recent price rally, the Bitcoin market has not yet entered a state of extreme greed. The “Fear and Greed Index,” a tool for measuring investor sentiment in the cryptocurrency market, currently rates Bitcoin market sentiment as “greed” with a score of 75. This index ranges from 0 (extreme fear) to 100 (extreme). Greed) provides an overview of investor emotions and behavior. While a reading of 75 indicates strong bullish sentiment, it is well below the “extreme greed” levels often associated with market tops.
About the author
Alex Dovbnya
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience reporting on everything related to the emerging industry – from price analysis to blockchain disruption. Alex has written more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He is particularly interested in the regulatory trends around the globe that are shaping the future of digital assets. He can be contacted at [email protected].
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