JAKARTA - Bitcoin (BTC), the world's largest cryptocurrency, has recorded a significant price increase in recent weeks. This was mainly triggered by investor optimism for the possible approval of Bitcoin exchange-traded funds (ETF) in the United States (US). The price of BTC creates a bullish mood in the crypto market.
According to data from CoinMarketCap, the price of Bitcoin is trading above $34,000 (around Rp485 million) per coin at 08.50 WIB, up from $28,000 last Thursday. This increase saw Bitcoin begin to approach its highest level at $35,000 which was achieved on January 9, 2023.
Crypto Market Sentiment Changed From Fear To Greed
The increase in Bitcoin prices also has a positive impact on overall crypto market sentiment. This can be seen from the Crypto Fear and Greed Index (CFGI), which measures the level of fear and greed in the crypto market.
This index jumped from the neutral zone to 71 (cash) on October 26, according to data reported by the Alternative.me platform. This figure shows that many investors are optimistic and dare to buy crypto assets.
CFGI is an indicator that describes the emotional condition of investors in the crypto market. On this scale, the number 0 reflects extreme fear, which suggests that many investors are worried and may make irrational sales. On the other hand, the number 100 reflects extreme greed, where many people buy for market optimism.
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Previously, CFGI was in the neutral zone, and a month ago it was even below 50 (threats). This indicates uncertainty in the crypto market before the dramatic changes that took place this week.
Coinmarketcap's Fear and Greed Index is currently also slightly higher, reaching 72 points. According to this crypto data aggregation site, the index was mostly in the neutral zone for most of October before turning into a green zone this week when market sentiment began to change significantly.
Bitcoin ETF In US Triggers Bull Market
One of the main factors affecting positive sentiment in the crypto market is the anticipation of the approval of Bitcoin ETF in the US by the United States Securities and Exchange Commission (SEC). ETF is an investment instrument that tracks the prices of certain assets, such as stocks, bonds, or cryptocurrencies.
Spot-based Bitcoin ETF will allow investors to buy and sell Bitcoin without having to own the asset directly. This will provide easier and safer access for retail and institutional investors to invest in the crypto market.
According to a recent study by Galaxy Digital, spot-based Bitcoin ETF is expected to increase the price of BTC by 74% in the first year after its launch. This is based on the assumption that Bitcoin ETF will attract a flow of $25 billion (Rp397 trillion) from investors.
Currently, the SEC is reviewing several Bitcoin ETF proposals from various companies, such as VanEck, Valkyrie, WisdomTree, and Fidelity. The SEC has until November to make a final decision on the approval or rejection of the Bitcoin ETF.
Anticipating the approval of Bitcoin ETF in the US has given optimism to crypto asset holders and made Bitcoin a major focus in the crypto world today. We will continue to follow this increasingly interesting development of the crypto market.
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