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Bitcoin Rallies Above $42k As Investors ‘Panic Buy’ The Asset

Twitter icon  •  Published 11 months ago  •  Hassan Maishera

Bitcoin has reached the $42k level for the first time in 19 months, with the coin’s Greed and Fear Index now reading 74, indicating greed among investors.

TL;DR

  • Bitcoin touched the $42,300 mark for the first time in nearly two years as more investors enter the market.

  • The Fear and Greed Index has massively increased and currently stands at 74.

Bitcoin Tops $42k As Investors’ Greed Heightens

Bitcoin, the world’s leading cryptocurrency by market cap, set a new 2023 high after rallying by more than 5% on Monday. BTC raced to the $42,360 level for the first time in nearly two years as more investors continued to panic buy the asset.

The ongoing rally can be attributed to a wide range of catalysts including expectations for lower interest rates, looming spot bitcoin ETF decisions and flows into digital asset funds.

With Bitcoin rallying, the Bitcoin Fear and Greed Index is at its highest level in nearly two years. The Crypto Fear and Greed Index provides a score of 0 to 100, showcasing Bitcoin sentiment from extreme fear to extreme greed. 

Traders and investors use this index to help them determine their entry and exit points in the market. At the moment, the Bitcoin Fear and Greed Index stands at 74, indicating that investors are currently greedy.

Bitcoin’s rally also saw the total cryptocurrency market cap rise by 1.5% to currently stand at $1.54 trillion. This is the first time the total crypto market cap crossed the $1.5 trillion mark since Terra’s collapse last year.

Bitcoin, Ether, Dogecoin, Avalanche (AVAX), Cardano (ADA), and Cosmos (ATOM) are the best performers amongst the top 20 cryptocurrencies by market cap. However, some leading altcoins, including Litecoin, Polygon (MATIC), TON, Solana, and XRP are all trading in the red zone. 

The bulk of the attention is on Bitcoin now, which means that altcoins are lagging. However, altcoins might follow in setting new yearly highs in the coming days or weeks.

 

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Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.