Bitcoin (BTC), last Thursday reached an intraday high of $62,729 on the Bitstamp exchange, marking a remarkable rise. The largest cryptocurrency, which gained 26% in the last four days, managed to quickly recover after falling to the year’s lowest level of $49,557.
Crypto Market Experienced the Most Epic Bear Trap
According to popular crypto analyst Byzantine General, the crypto market experienced the “most epic” bear trap. Bitcoin, despite a sharp drop along with global stock markets at the beginning of the week, quickly recovered after this decline. On the daily charts, Bitcoin recorded its largest green candle in USD terms to date.
JPMorgan attributed Bitcoin’s strength to institutional demand. It was noted that institutional investors in Bitcoin futures on the Chicago Mercantile Exchange (CME) showed almost no tendency to reduce risk despite market chaos. Notably, there were no exits from BlackRock’s IBIT fund during the major crash, and it has now returned with strong inflows.
Along with all these, it was also observed that Bitcoin’s price was very close to creating extreme pressure on miners due to the sharp decline.
Extreme Fear Turned Neutral
As previously reported, the devastating market crash had pushed market sentiment for Bitcoin and altcoins into the “extreme fear” zone, but the Crypto Fear and Greed Index has now returned to the neutral zone with a score of 48 out of 100. This recovery in market sentiment is seen as an example of an impressive sentiment rebound.
According to the data and price platform CoinMarketCap, BTC is trading around $61,000 after giving back some of its significant gains. This situation once again highlighted the market’s volatility and how quickly investor sentiment can change. Nevertheless, Bitcoin continues to attract investors’ attention with its sharp price movements.
