Folks, it looks like we’re back in the fast lane. The crypto market experienced a significant surge, rising nearly 4 percent in the past 24 hours to reach approximately $2.21 trillion on Tuesday. Bitcoin (BTC) spearheaded this rally, even as midterm crypto uncertainty continued to fuel fear and pessimism. Despite a temporary rebound in BTC prices, Bitcoin’s fear and greed index dropped to 27 percent.
Notably, Bitcoin’s price surged over 3 percent in the past 24 hours, trading at around $57,222 during the early European session on Tuesday.
Where is BTC headed next?
The German government, a significant Bitcoin holder over the past decade, has been selling its Bitcoin holdings in the past 20 days. After seizing nearly 50,000 coins from the movie piracy site movie2k.to, Germany now holds about 27,461 Bitcoins, valued at approximately $1.5 billion.
Using a combination of over-the-counter (OTC) options and centralized exchanges to liquidate its holdings, Germany has significantly impacted bullish sentiment in the market. On Monday, the country made its largest on-chain movement, transferring around 16,000 BTC (worth nearly $1 billion).
Shortly after, Germany accumulated approximately 3,673 Bitcoins from centralized exchanges, valued at around $207 million.
The negative impact of the Mt.Gox repayments on the crypto industry has gradually declined in recent days. Additionally, many investors receiving Mt.Gox funds are believed to be long-term holders, reducing immediate selling pressure.
The upcoming FTX cash distribution of nearly $16 billion in the fourth quarter is anticipated to increase overall crypto buying pressure, potentially mitigating the impact of any remaining Mt.Gox sales.
Amid heightened crypto fear, uncertainty, and doubt (FUD), Santiment noted that the chances of a market rebound are high. From a technical perspective, Bitcoin has been forming a bullish flag against the US dollar, indicating a potential rise towards $72,000 soon.
However, a consistent close below $53,000 in the coming weeks could amplify fear and trigger increased crypto capitulation.
Read Also: List Of Top Three Altcoins To Avoid This Season
Is the fear in the crypto market justified? Share your take on the current sentiment!
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