Volatility has returned to the cryptocurrency market. The bitcoin price briefly broke the level of USD 57,000. In turn, ether strengthened above USD 3,200.
Bitcoin price is rising!
The market has been boring lately. However, Bitcoin has come back to life and after a relatively short stagnation, it is becoming more expensive again. Overnight, it briefly broke through $57,000. Currently, one bitcoin costs slightly less – USD 56,200. This means that the cryptocurrency has increased in price by 8% during the week, and by 9% since yesterday.
The above perfectly reflects the fear and greed index today, which is 79. This means that there is already extreme greed in the market. This may be a warning that a stronger correction is becoming real. However, even if it did happen, it would not prevent further growth.
Ether is also becoming more expensive. Today, 1 ETH costs $3,230, which translates into a 4% price jump since yesterday. During the week, the price increased by as much as 10%.
The Ethereum Fear and Greed Index is 80, which also translates into extreme greed (“Extreme Greed”).
Why are cryptocurrency valuations rising?
But why are the valuations of leading cryptocurrencies increasing? This is the result of growing demand from ETF issuers. As follows from data shared by Bloomberg ETF analyst Eric Balchunas, the trading volume of nine BTC ETFs reached as much as USD 2.4 billion on February 26, beating the previous record of USD 2.2 billion set on the first trading day – January 11.
In addition, the Bitcoin halving and the update of the Ethereum network, Dencun, are fast approaching, which is intended to improve its operation (may increase its scalability).
In the background, we still have the entire investment market (not only cryptocurrencies) waiting for interest rate cuts. in the USA (this week we will learn new inflation data, which may be crucial in this field).
There are many indications that bitcoin may exceed ATH at the moment of halving.
The above text does not constitute investment advice.
