Bitcoin Powers $3T Crypto Surge as Sentiment Reaches ‘Excessive Greed’

• The cryptocurrency market has skilled a notable surge previously two weeks.
• The post-election surge has plunged the crypto market into an Excessive Greed state of affairs.
• Analysts predict a possible value correction following the crypto market’s state of affairs.

The cryptocurrency market surged over the previous two weeks, led by Bitcoin’s climb to $90,000, marking a record-breaking efficiency. Hypothesis suggests the rally was triggered by Donald Trump’s victory within the current U.S. presidential election. Inside every week, Bitcoin, which had been buying and selling under $68,000 until the eve of the elections, soared to a brand new all-time excessive of $93,483.

Following Trump’s election win, a number of cryptocurrencies skilled important value positive factors. Ethereum, the second-largest cryptocurrency by market capitalization, gained over 45% throughout this era, whereas Solana added 56% to its worth throughout the identical interval.

The fast value will increase propelled the full cryptocurrency market cap previous $3 trillion, approaching the file excessive of $3.09 trillion achieved through the 2021 bull run. 

Learn additionally: Commerce Crypto Throughout Durations of Excessive Worry and Greed

Worry and Greed Index Alerts Excessive Optimism

CoinmarketCap’s knowledge revealed an 83-point score on the Crypto Worry and Greed Index, indicating a shift towards Excessive Greed available in the market.

For context, the Crypto Index is utilized by crypto traders to watch the prevailing sentiment and emotional state of the market. It will affect the shopping for and promoting behaviors of merchants. If the market score is nearer to 100 on the metric, it suggests an overvalued crypto market, and traders might withdraw from the market, doubtlessly main to cost declines.

In response to CoinMarketCap’s knowledge, the best Worry and Greed Index score in 2024 was 92. It was recorded through the pre-halving rally, which noticed Bitcoin attain its earlier all-time excessive above $73,000. The entire crypto market cap rallied above $2.7 trillion then, earlier than retracing to $1.69 trillion.

Regardless of the elevated Worry and Greed Index, analysts consider the present bull run remains to be in its early levels. They argue that favorable macroeconomic elements will maintain the momentum, with any pullbacks prone to be transient and restricted. The continuing upside suggests sturdy potential for the crypto market because it navigates the rest of the cycle.