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Gold, stocks prepare for crypto “bullish divergence.”

Sentiment data shows that the crypto market is increasingly expecting a push in price discovery.

​The Crypto Fear and Greed Index has returned to the zone of extreme greed – the characteristic mood of Bitcoin and altcoin market participants.

This is independent of a marked price increase, suggesting that if the market appreciates rapidly, traders may become increasingly irrational.

​​​The fear and greed index remains above levels seen in 2021 when Bitcoin recorded a previous ATH of around $69,000, but there is still room to increase before reaching levels that trigger a price correction on many markets.

Analyzing the drivers of investor optimism last week, research firm Santiment argued that it could form part of broader confidence in risk assets.

“Cryptocurrency traders often hope that Bitcoin and other assets will carve their own path without dependence on stocks or other sectors. But for a change, the crowd has suggested that strong ATHs from the SP500 and gold are creating a bullish divergence so that BTC and altcoins benefit from the distribution of gains from other sectors.”