Crypto market enters ‘greed’ zone as Bitcoin hikes further

The crypto market sentiment is seeing a major shift as leading digital assets continue their bullish momentum.

According to data provided by CoinMarketCap, the crypto fear and greed index entered the 60 zone today, signaling slightly greedy market conditions.

The crypto market has entered the “greed zone” for the first time in six weeks, marking a significant shift in sentiment. The last time the market was in this zone was on July 31, just before a sharp decline in early August when Bitcoin (BTC) fell below the $54,000 mark.

The current rebound has been fueled by Bitcoin’s bullish momentum. Since October 10, Bitcoin has experienced a 12% surge, briefly reaching a two-month high of $68,375 on October 16. Although there was a slight correction following that peak, Bitcoin is still up 0.3% in the past 24 hours, trading at $67,350 at the time of writing.

Data from IntoTheBlock reveals that 95% of Bitcoin holders are currently in profit, with 3% at break-even and only 2% at a loss. This indicates that many holders are experiencing gains, which could lead to short-term profit-taking as the market shows signs of overbought conditions.

Additionally, the number of daily active addresses in profit declined from 112,780 to 91,160 unique wallets between October 15 and 16. This drop suggests that some investors might be holding off on taking profits, potentially anticipating further price increases before selling.

This surge in market sentiment, combined with rising profits for Bitcoin holders, reflects growing optimism in the market despite occasional price corrections.

One of the key drivers behind Bitcoin’s bullish momentum is the increased demand for spot Bitcoin exchange-traded funds (ETFs) in the U.S. According to a crypto.news report, these investment products have seen a significant net inflow of over $1.6 billion over the past four days, with $458.5 million of that total coming on October 16 alone.

The surge in inflows into Bitcoin ETFs indicates growing investor interest and confidence in Bitcoin as an asset class. With such large sums flowing into Bitcoin ETFs, the demand for Bitcoin is likely to remain strong, further supporting the recent upward price action and contributing to the overall positive sentiment in the market.