Bitcoins
- Bitcoin approaches US$70k, marking a 10.68% increase this week, while Ethereum, Solana, and XRP also record significant gains.
- Dogecoin emerges as the top performer with a 30% weekly surge, indicating strong market enthusiasm.
- The Crypto Fear & Greed Index hits 73, pointing to a greed-driven market as it reaches the highest level in October.
- This market uptrend, driven by both retail and institutional interest, may propel Bitcoin into uncharted territory.
Bitcoin and Co are continuing their upwards trend, as the Crypto Fear & Greed Index jumps to heights not seen since July 2024. The index is signalling Greed as the value hits 73, the highest in October.
Meanwhile, Bitcoin is fast approaching the US$70k mark, currently trading for US$69,424 (AU$103,468), an increase of 10.68% in the past week. Ethereum (+12.12%), Solana (+14.82%) and XRP (+3.58%) are also up.
Related: US SEC Gives Go-Ahead for Spot Bitcoin Options Listings On NYSE
The biggest gainer out of the top ten cryptos by market cap is Dogecoin (DOGE), which has surged 30% week-on-week. DOGE currently trades for US$0.144 (AU$0.208), as data from CoinMarketCap shows.
Uptober Rally Sparks Retail Interest
Part of the renewed interest in the market is evidenced by the strong price action and the return of greed.
The crypto market is highly emotional, often influenced by greed and panic. The Fear and Greed Index measures Bitcoin sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed) to help investors make rational decisions, identifying potential buying opportunities during fear and warning of corrections during greed.
However, it shouldn’t be used as the sole tool for market entry. For example, take July, when the Index was around a similar greed stage. Not long after, BTC dropped by around 20%.
Of course, that’s not always the case and often greed leads to FOMO and more buying, as we saw in December 2023, when Bitcoin continued to rise despite the Greed status.
And not to forget that while Bitcoin had a good run, most altcoins are still stuck in a bear market. Analyst Michaël van de Poppe believes it’s the longest altcoin bear market so far and anticipates that it will soon lead to some significant changes.
This is the longest #Altcoin bear market we’ve experienced.
Longer than the 2014-2016 period and you’re still here.
That’s great, as the bull market is around the corner and this will likely exceed your expectations.
— Michaël van de Poppe (@CryptoMichNL) October 20, 2024
Uncharted Territory Ahead, Says Swissblock
Swissblock analysts believe that it’s not only altcoins which will see more gains, Bitcoin itself should also “head into uncharted territory”, they wrote in a recent research note.
It has cost us FUD, red days, and turmoil, but here we are, about to go through the breach toward the next battlefield that could take us to the long-awaited post-halving bull run.
Swissblock
A reason for the bullish outlook could be the increasing interest from institutional investors, evidenced by inflows into the US Spot Bitcoin funds on a scale not seen since July 2024.
According to Swissblock, the Bitcoin bull run is increasingly influenced by macroeconomic data due to quantitative tightening, aligning more closely with traditional finance.
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While the US election, particularly a victory by pro-Bitcoin candidate Donald Trump, could catalyse a market upswing, Swissblock point to stronger, inherent fundamentals which likely will drive Bitcoin’s ascent towards new highs.
Indicators of bullish price momentum and a neutral Bitcoin Risk Index further support this potential rise.
Aaron Feuerstein Read More