The sentiment in the cryptocurrency market is experiencing a significant shift as leading digital assets maintain their bullish momentum. Data from CoinMarketCap shows that the crypto fear and greed index has entered the 60 zone, indicating slightly greedy market conditions. This marks the first time in six weeks that the market has reached the greed zone, with the last occurrence on July 31. A sharp decline followed in early August when Bitcoin’s price dropped below the $54,000 mark.
The recent market-wide recovery has been largely driven by Bitcoin’s strong upward momentum. Since October 10, Bitcoin has consistently risen, recording a 12% surge over the past week. On October 16, it briefly hit a two-month high of $68,375. Although there was a slight correction, Bitcoin remains up 0.3% in the past 24 hours and is trading at $67,350 at the time of writing.
According to data from IntoTheBlock, 95% of Bitcoin holders are currently in profit, 3% are close to breaking even, and only 2% are experiencing losses. With so many holders in profit, short-term profit-taking would be expected.
However, the number of daily active addresses in profit dropped from 112,780 to 91,160 between October 15 and 16, suggesting that some investors might be holding out for a further price increase instead of taking profits immediately.
One of the key drivers behind Bitcoin’s bullish momentum is the growing demand for spot Bitcoin exchange-traded funds (ETFs) in the U.S. According to a report from crypto.news, these investment products saw a net inflow of over $1.6 billion in the past four days, with $458.5 million in inflows on October 16 alone.
