As Bitcoin (BTC) inches closer to its all-time high (ATH), the Fear and Greed Index in the cryptocurrency market has soared to its highest level since February 2021, reaching a staggering 90.
The index, which measures market sentiment on a scale of 0 to 100, with 0 indicating extreme fear and 100 indicating extreme greed, reflects an unprecedented level of greed among traders. This heightened greed suggests that market participants are eager to accumulate more cryptocurrency, contributing to upward price movements.
For years, the Fear and Greed Index had languished below the 70 mark, indicating relatively subdued market sentiment. However, sentiment has witnessed a notable improvement since last fall, coinciding with the market’s recovery and transition to a bullish phase.
At the time of reporting, BTC is trading at $66,700, marking a 2.4% increase over the past 24 hours and a significant 17.7% surge over the past seven days, according to data from CoinMarketCap. Moreover, Bitcoin’s market capitalization has surged to a new all-time high, surpassing $1.3 trillion. On March 4, BTC briefly touched $68,600, coming close to its ATH recorded in November 2021.
Despite the upward trajectory, the cryptocurrency market has witnessed over $560 million in liquidations on futures contracts. The majority of liquidations occurred on trading pairs involving Bitcoin, Ethereum (ETH), Dogecoin (DOGE), and Shiba Inu (SHIB). Notably, Binance and OKX cryptocurrency exchanges recorded the highest volumes of liquidations, underscoring the market’s heightened activity and volatility.
The surge in market sentiment, coupled with Bitcoin’s impressive price performance, underscores the growing optimism and bullish outlook prevailing in the cryptocurrency market. As traders eagerly anticipate further price gains, the crypto landscape remains vibrant and dynamic, presenting both opportunities and risks for investors.
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