Bitcoin prices soared to their highest levels in months in just a few hours on Wednesday, adding to weeks of modest gains amid a flurry of positive developments for the recently struggling market, with U.S. Bank and Bank of America among the most recent legacy financial institutions to embrace the space.
Bitcoin price soared 10% to more than $55,000 at 12:30 p.m. on Wednesday, achieving its highest level in over five months and helping its market capitalization surpass $1 trillion for the first time since May.
Bitcoin Greed 2.0
Tuur Demeester, an investor and analyst who wrote the game-changing report “The Bitcoin Reformation,” provides his thoughts on the current BTC price rise.
According to Mr. Demeester’s charts, the Bitcoin (BTC) supply has returned to the “Greed” zone. He means “greed” when he says that more than 55% of Bitcoins are held with unrealized (“paper”) earnings.
The previous long-term voyage to this “Greed” zone resulted in a 200 percent increase in the price of Bitcoin (BTC), driven by both individuals and institutional investors.
It lasted 196 days until being superseded in May by an “uncertain” phase of “Optimism/Denial.” Mr. Demeester claims that the “cooling-off” period will soon be over.
Bitcoin (BTC) fell into the “Capitulation” zone after “Black Friday” in March 2020, and hasn’t returned since.
Mr. Demeester further noted that the two most recent bull runs (in 2013 and 2017) each had two waves. As a result, Bitcoin’s (BTC) surge to $65,000 in May is most likely the initial stage of this rally.
Alternative’s “Fear and Greed” index for Bitcoin is up for the third day in a row. It entered the “Greed” zone yesterday and is presently rated at 68/100.