The Bitcoin market is back in the spotlight, thanks to a sharp rise in the Fear and Greed Index, which has reached abnormally high values. We have seen similar levels of the index either at the beginning of previous bull markets or when reaching intermediate highs. Looking at the activity of big players, funding, and Bitcoin dominance, we can assume that we are probably on the verge of a new bull run.
Fear and Greed Index: What does it mean?
The Fear and Greed Index is a tool that helps measure current market sentiment. High readings on the index usually indicate that greed is prevalent among investors, which in turn predicts that the market is ready for significant changes. Today's readings on the index are comparable to those that heralded the start of strong bullish moves in the past.
Activity of large and long-term investors
Long-term Bitcoin holders, often referred to as “old whales,” continue to actively increase or maintain their positions despite high readings on the Fear and Greed Index. This indicator shows their confidence in the long-term prospects of Bitcoin, and it is these players who often determine the beginning of a new trend. Their actions indicate their intention to stay in the market, which creates strong support for the current bullish move.
Funding and Bitcoin Dominance: Key Growth Indicators
Against the backdrop of the growing greed index, it is worth paying attention to Bitcoin funding, which remains stable, and the level of its dominance in the cryptocurrency market. Stable funding indicates that the market is not overheated, and high Bitcoin dominance shows that investors still prefer this cryptocurrency. This is typical behavior for the early stages of a bull run, when capital begins to actively flow into Bitcoin, and, therefore, its dominant role increases.
Conclusion: On the threshold of a new bull run
Analyzing the current data, we can conclude that the Bitcoin market is showing signs of a new bullish cycle. The high index of fear and greed, the activity of large investors, stable funding and growing dominance create all the conditions for further growth.
