Bitcoin Recovers Investor Sentiment in 3 Months... Anticipates Reversal at the Threshold of $80,000

▲ Bitcoin (BTC)

Bitcoin (BTC) has shown a strong recovery, nearing the $80,000 mark, causing investor sentiment in the virtual asset market to surge to its highest level in three months.

According to Cointelegraph, a specialized virtual asset media outlet, on April 22 (local time), market sentiment significantly improved as Bitcoin surged by approximately 6% in a single day, approaching the $80,000 mark. The Crypto Fear & Greed Index, compiled by Alternative.me, rose 14 points from the previous day to 46, its highest level since January 18. This represents a remarkable rebound compared to February 23, when Bitcoin fell to $63,000 and the index plummeted to 5 following the Trump administration's tariff policy announcement.

While market sentiment indicators still remain in the 'fear' phase, institutional finance continues to show optimism. Wall Street sees ongoing institutional adoption through Bitcoin spot ETFs, and discussions are underway in Washington D.C. for virtual asset-friendly regulatory reforms. However, experts, including Chief Investment Officer Matt Hougan, diagnose that the participation of individual investors, as represented by social media mentions and Google search volumes, is still low compared to previous bull cycles.

Bitcoin surged to $79,400 at one point on Wednesday and is currently trading around the $77,920 mark. Research head Julio Moreno analyzed that this rally was driven by strong demand in the futures market. However, demand in the spot market is decreasing at a moderate pace, raising the possibility of a short-term price correction if investors engage in profit-taking.

On-chain data analysis reveals that Bitcoin's supply structure is becoming more robust, centering around long-term holders. Over the past 30 days, more than 300,000 BTC moved into the wallets of long-term holders, while short-term investors reduced their holdings. Notably, Strategy accumulated an additional 53,000 BTC over the past month, absorbing market supply. This phenomenon suggests that the supply leadership of Bitcoin is shifting into the hands of stronger capital.

Bitcoin's current surge is noteworthy as it occurred amidst ongoing geopolitical instability in the Middle East. Despite conflicts between the U.S. and Iran over the management of the Strait of Hormuz, Bitcoin has charted an independent price trajectory, solidifying its status as a store of value. Investors are closely monitoring whether the index will exit the fear phase and if the futures market-led rally will translate into strong buying in the spot market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*