The cryptocurrency market is experiencing a wave of bullish momentum, with Bitcoin at the forefront of the surge. According to data from CoinMarketCap, the market sentiment has shifted significantly, with the crypto fear and greed index entering the “greed” zone, hitting a score of 60. This marks the first time in six weeks that the market has reached this level, last seen on July 31, before a sharp decline in August.
The recent rally in Bitcoin prices has been instrumental in pushing the market into “greedy” territory. Since October 10, Bitcoin has seen a 12% increase, reaching a two-month high of $68,375 on October 16. While a slight correction followed, the digital asset remains robust, with Bitcoin trading at $67,350 at the time of writing, up 0.3% in the past 24 hours.
The increase in Bitcoin’s price has also resulted in significant profits for investors. Data from IntoTheBlock reveals that 95% of Bitcoin holders are currently in profit, with only 2% facing losses, and 3% close to breaking even. The large number of holders in profit could lead to short-term profit-taking, which is considered a normal response to such market conditions.
However, not all investors are rushing to take profits. Between October 15 and 16, the number of daily active addresses in profit fell from 112,780 to 91,160. This decrease suggests that some investors are holding out for further price increases, anticipating that the market may have more room to grow.
One of the key drivers behind Bitcoin’s recent momentum has been the increasing demand for Bitcoin spot exchange-traded funds (ETFs) in the United States. Over the past four days, these investment products have attracted more than $1.6 billion in net inflows, including $458.5 million on October 16 alone. The surge in demand for these ETFs has provided additional support for Bitcoin’s price rally.
In the broader crypto landscape, payments giant Stripe has reportedly entered talks to acquire stablecoin provider Bridge, five months after reintroducing USDC payments for U.S. merchants. The acquisition, if successful, would further bolster Stripe’s position in the rapidly growing crypto market. Although both companies have yet to make public statements, negotiations are said to be ongoing.
Stripe’s interest in expanding its crypto services aligns with comments made by the company’s president, John Collison, in April. Collison highlighted the benefits of crypto transactions, noting their “instant settlement” on-chain and seamless conversion to fiat currency. By acquiring Bridge, Stripe would be better positioned to enhance its crypto offerings and provide more comprehensive services to its clients.
The crypto market’s entry into the “greed” zone signals growing confidence among investors, driven by Bitcoin’s bullish performance and the increasing adoption of digital assets in mainstream financial products. As the market continues to evolve, the coming weeks will likely be pivotal for both Bitcoin and the broader cryptocurrency ecosystem.