Fear and Greed Index is signaling more tailwind to already appreciating Bitcoin price as the index hits 61 on Monday, January 30th. This score indicates investors are turning greedy to push the largest cryptocurrency above $24,000 this week.
Bitcoin was last in the greed zone during the height of the bull run in November 2022. Monday, January 30th, marks Bitcoin’s 11th consecutive day outside the fear zone in the Fear and Greed Index.
Bitcoin Fear and Greed Index is 61 – Greed
Current price: $23,780 pic.twitter.com/U5gxN3AwnT
— Bitcoin Fear and Greed Index (@BitcoinFear) January 30, 2023
Bitcoin Hovers Below $24K
According to CoinMarketCap, Bitcoin (BTC) is exchanging hands at around $23,650, 1.91% up in the last 24 hours. On Sunday, January 29th, the crypto king rallied by 3.11% to post a 2023 all-time high (ATH) of $23,919.
In the last 24 hours, Bitcoin is looking strong above $23,000, and it looks like the investors have brushed aside Fed’s interest rate hike FUD as the coin started Monday with a Bitcoin Fear and Greed Index jumping from 55 to 61 in the early hours of the day.
This improved market sentiment for Bitcoin suggests a further tailwind to the price. However, despite Bitcoin’s resurgence in recent weeks, not all market participants are bullish and debate whether the coin will continue its upward trajectory or a correction, possibly to $12,000 as discussed, will follow this recent price pump.
However, the bull predictions are now prevailing over bear predictions as a poll by CoinGecko on Monday reveals that 32.1% of 4,390 voters believe that BTC will climb higher to between $25K-26K in the next week. The second-largest percentage of votes thinks the price will surge above $27K.
What’s your price prediction for #Bitcoin in the coming week?
— CoinGecko (@coingecko) January 29, 2023
Whatever happens to the market, the recent price surge has pushed more BTC holders back into profit. According to the data provided by IntoTheBlock, 62% of BTC investors are in profit at the current price.
US Fed to Announce Interest Rate Decision on February 1st
Investors have now turned their attention to the US Federal Reserve as it will release its interest rate decision on Wednesday, February 1st. There is a strong chance of raising interest rates by 25bps.
The U.S. Federal Reserve will release its interest rate decision on February 1 this week, and CME shows a 99.9% probability of raising interest rates by 25bps. Interest rate futures show that the Fed's current rate hike cycle may end in June. https://t.co/ApuVbYxZYf
— Wu Blockchain (@WuBlockchain) January 30, 2023
According to reports, the US Fed will likely end its hiking campaign in March 2023, suggesting an eased inflationary pressure. This, together with the FTX and Genesis contagion risk and hopes of a Ripple win in the ongoing SEC-Ripple case, is expected to bring more tailwinds to crypto markets.