Bitcoin price reached its highest level in 12 months and maintained for many days, causing the "greed index" of players to reach a historic mark.
On October 24, the price of Bitcoin (BTC) suddenly increased from 30 thousand to 34 thousand USD and maintained this price range throughout the following days. By the end of October 27, one BTC cost 34,180 thousand USD, becoming a hotly discussed topic on social networks both in Vietnam and the world.
Lucci Phan, Sales Director of a digital currency exchange in the top 5 in the world, said this is an interesting price movement in the context of the "Bitcoin winter" that has not yet ended. "Bitcoin players have had an emotional week following price fluctuations from the beginning of the week and witnessing a sudden increase in the middle of the week," Lucci Phan said.
Data from Alternative, a site that tracks the cryptocurrency market, shows that the Fear and Greed index of Bitcoin users on October 25 was up to 72/100 points, up 6 points compared to October 24 and up 25 points. points compared to last month. This is also the highest point of the market since June 16, 2022 - the collapse of the Terra ecosystem. The last time the "greed" index reached 72 points was when Bitcoin reached its all-time high - 69,044 USD on November 10, 2023.
The Fear & Greed Index is measured from 0 to 100, where 0 represents "Extreme Fear" and 100 represents "Extreme Greed." This index is based on calculations related to market volatility (25%), trading volume (25%), social media measurement (15%), search trends from Google (10%) and other tracking methods.
According to Cointelegraph, Bitcoin players' excitement increased sharply after information that BlackRock's Bitcoin spot exchange-traded fund (ETF) may be approved by the US Securities and Exchange Commission (SEC). After that, major cryptocurrency investment companies all made optimistic forecasts, making the market vibrant, helping Bitcoin increase in price. Market analysis site CryptoCon predicts that BTC price could reach 45 thousand USD in November.
Cointelegraph also cited a report showing that BTC's market dominance index last week reached 54%, the highest level in the last 30 months. Bitcoin's market dominance is a measure of BTC's capitalization relative to the total assets of the cryptocurrency market. Levels above 50% are considered very optimistic, marking the next price increase of Bitcoin.
Meanwhile, major cryptocurrency exchanges witnessed a wave of money being transferred out of the exchange. This move shows that Bitcoin holders do not want to trade but transfer money to safe storage, hoping for the next price increase. Meanwhile, according to statistics from Google Trends, the number of searches for keywords related to buying Bitcoin has increased sharply. For example, in the UK, this keyword increased by 826% within 7 days.
In the US, search questions about whether to buy Bitcoin also increased by more than 250% during the week. Meanwhile, in Vietnam, the keyword "Bitcoin price" increased by 650%, and the fever even caused keywords related to the price of virtual currency Pi to also enter the top of many searches.
According to Lucci Phan, Bitcoin price movements are an optimistic signal for the market. Some players are worried that BTC may fall to the price range of 20 thousand USD, but most believe that the market is about to enter a new growth cycle. "The majority of players maintain a positive attitude towards the market, especially the information that an ETF can be approved by the SEC will be a big turning point for the entire cryptocurrency market," Lucci Phan said.
ETF senior analysts Eric Balchunas and James Seyffart commented on X that the possibility of this spot fund being approved before January 10, 2024 is 90%.