Bulls Take the Lead as Bitcoin Investor Sentiment Recovers

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Bitcoin investor sentiment had wavered following the implosion of crypto exchange FTX. This had sent market sentiment to one of its lowest points for the year 2022, falling deep into extreme fear territory. However, as the market rallied over time, investors in the space were able to take stock of the losses and readjust, with the positive CPI report boosting confidence in the market. Now, sentiment has seen a sharp rise as the bulls strengthen.

Bitcoin Investors Leave Extreme Fear Behind

Over the past two days, sentiment among bitcoin investors has steadily improved. Data from the Fear & Greed Index shows that while the market ended last month in extreme fear, the new month saw better levels. A six-point increase from Nov. 24 put the index at 30, comfortably lifting the market out of extreme fear.

Now, while this is an improvement from the numbers of the last few months, it still doesn’t mean bitcoin is out of the woods. Investors are still very reluctant to invest in the market, as evidenced by the low Fear & Greed Index scores of 30 out of 100, but this nonetheless marks a slow return of confidence in the market.

Investor sentiment improves this week | Source: alternative.me

Bitcoin’s brief recovery above $18,000 on Tuesday was obviously the driver behind the three-point rally yesterday to today. Thus, the digital asset would have to maintain its gains to maintain a consistent sentiment at these levelers. However, it would take a significant rise in Bitcoin price to see higher levels or even to see greed territory.

Crypto Market Recovery Holds Back

In the past 24 hours, the total crypto market cap has already seen over $30 billion added. This is a result of bitcoin recovering and then the rest of the crypto market rallying behind it. Currently, many cryptocurrencies are still holding onto a good chunk of their gains, allowing the crypto market cap to stay above the $820 billion market cap.

Bitcoin is already posting gains of 3.96% in the past day as it continues to hold above $17,700 at the time of this writing, along with others like Ethereum which is still trading above $1,300n with 5.17% in 24 hours. Clearly, digital assets are still riding high on yesterday’s rally.

BTC down more than 70% against ATH | Source: BTCUSD on TradingView.com

However, since the start of the year, the crypto market has not fared very well, losing over $1 trillion in 2022 alone. With only about two weeks left in the year, it looks like the market will come out on a weak note, with bitcoin closing below $20,000.

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