The fear and greed index has been updated to “greed” as bitcoin hits $42,600.
Bitcoin has seen a resurgence in price following twelve consecutive days of bullish momentum. Bitcoin has seen twelve days of green for the first time since February as it headed towards its previous all-time high.
However, following a dramatic decline to $29,000 in July, bitcoin has managed to climb nearly 45% in less than two weeks. Currently priced at $41,600 on Sunday, the fear and greed index has shifted to 60, which indicates greed in the market. The shift in momentum comes one month after the fear and greed index was at 21, or extreme fear.
According to on-chain analysis company Santiment, bitcoin’s price surge is partly due to this week’s outflows from exchanges. Santiment tweeted, “Bitcoin’s exchange action was a primary initiator of the breakout we saw this week. BTC’s price has hit $42.5k, and there were huge exchange activity swings favoring coins moving off of exchanges Monday, Wednesday, & Thursday to push prices upwards.”
Major outflows of BTC this week that occurred on three separate days has clearly been an indicator of buyers purchasing bitcoin and moving it off of exchanges, reducing liquidity.
Ethereum also rallies
Similarly to bitcoin, ethereum has also experienced twelve consecutive days of bullish momentum. Etheruem has hit $2,638 on Sunday. The latest price surge means ethereum has reached a new month and a half high.
ETH 2.0 staking has also seen a dramatic increase in ethereum being staked. Currently, the staking platform has over 6.66 million ethereum being staked. Currently valued at $17.1 billion.
Chief Investment Officer at Moskovski Capital, Lex Moskovski, believes ethereum is currently poised for a supply squeeze. Moskovski reiterated that ethereum supply on exchanges has been drained. While the supply of ethereum in smart contracts is continuously increasing.