Bitcoin investor sentiment had wavered following the implosion of the FTX crypto exchange. This had sent market sentiment to one of its lowest points for the year 2022, falling deep into the ‘Extreme Fear’ territory. However, as the market has recovered with time, investors in the space have been able to take stock of losses and readjust, with the positive CPI report boosting the faith in the market. Now, sentiment has seen a marked uptick as bulls become stronger.
Bitcoin Investors Leave Extreme Fear Behind
Over the last couple of days, bitcoin investor sentiment had been steadily improving. Data from the Fear & Greed Index shows that while the market finished last month in extreme fear, the new month has seen better levels. A six-point increase from November’s 24 has put the index at 30, bringing the market comfortably out of extreme fear.
Now, even though this is an improvement from last month’s figures, it does not mean that bitcoin is out of the woods yet. Investors are still very wary of putting money into the market, as evidenced by the low 30 out of 100 scores’ on the Fear & Greed Index, but nevertheless, it does mark a slow return of faith in the market.
Bitcoin’s brief recovery above $18,000 on Tuesday was obviously the driver behind the three-point increase recorded between yesterday and today. So the digital asset would need to maintain its gains to keep sentiment consistent at these levelers. However, there would need to be a significant increase in bitcoin’s price to see higher levels or even to see the greed territory.
Crypto Market Recovery Holds
In the last 24 hours, the total crypto market cap has already seen more than $30 billion added to it. This is a result of bitcoin’s recovery and then the rest of the crypto market rallying behind it. Presently, a lot of the cryptocurrencies are still holding onto a good portion of their gains, enabling the crypto market cap to stay above the $820 billion market cap.
Bitcoin is already seeing 3.96% gains in the last day as it continues to hold above $17,700 at the time of this writing, as well as others such as Ethereum still trading above $1,300n with 5.17% in 24 hours. Obviously, the digital assets are still riding the high from yesterday’s recovery.
However, on a year-to-date basis, the crypto market has not done too well, losing more than $1 trillion off the top in just 2022 alone. With only about two weeks left for the year, it looks like the market will ride it out on a low note, with bitcoin closing below $20,000.
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