Bitcoin has managed to record its fastest sentiment recovery in more than a year, according to the Fear & Greed Index.
The closely watched sentiment indicator went from just 25 points (“fear”) to 69 points (“greed”) in only four days.
The cryptocurrency market is back in bullish mode after cooler-than-expected inflation data indicated that the U.S. Federal Reserve might cut interest rates multiple times this year.
Earlier today, Fed governor Chris Waller hinted that the central bank might be getting closer to loosening its restrictive monetary policy, indicating that a cut might already be on the table this September. “I believe the time to lower the policy rate is drawing closer,” he said. Notably, he claimed just two months ago that there would be no rates until late 2024.
The price of Bitcoin surged to an intraday high of $66,129 on the Bitstamp exchange on Wednesday, reaching its highest level since June 20.
The leading cryptocurrency has surged more than 23% after hitting a local bottom of $53,550 on July 5.
Bitcoin has managed to recover in such a short span of time largely because of strong dip-buying from Bitcoin ETF investors. On Thursday, these products managed to extend their streak of highly impressive inflows, with another $422 million worth of fresh money. In the meantime, BlackRock’s Bitcoin ETF has surpassed $20 billion worth of assets under management, recording yet another major milestone.
CryptoQuant CEO Ki Young Ju also recently noted that the Coinbase premium recently hit a three-month high, which indicates that U.S. market sentiment is recovering.
In the meantime, German authorities recently confirmed that they were done selling Bitcoin holdings, stressing that their sales were “fair” and “gentle.”
Bitcoin is currently changing hands at $65,142 on the Bitstamp exchange. The cryptocurrency has given up some gains due to the underperformance of major U.S. equity indices such as the Nasdaq and the S&P 500.
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