Bitcoin, Investor Sentiment Recovers in 3 Months...Reversal Anticipated at the Threshold of $80,000

▲ Bitcoin (BTC)

Bitcoin (BTC) is showing a strong recovery, nearing the $80,000 mark, causing investor sentiment in the virtual asset market to surge to a three-month high.

According to Cointelegraph, a virtual asset media outlet, on April 22 (local time), market sentiment significantly improved as Bitcoin surged by approximately 6% in a single day, approaching the $80,000 level. The Crypto Fear & Greed Index compiled by Alternative.me recorded 46, a 14-point increase from the previous day, marking its highest value since January 18. This is a dramatic rebound compared to February 23, when Bitcoin fell to $63,000 due to the Trump administration's tariff policy announcement, causing the index to plummet to 5.

While market sentiment indicators still remain in the "fear" stage, the institutional financial sector continues to show optimism. Wall Street sees ongoing institutional adoption through Bitcoin spot ETFs, and discussions about virtual asset-friendly regulatory reforms are underway in Washington. However, experts, including Chief Investment Officer Matt Hougan, have diagnosed that the participation of individual investors, represented by social media mentions and Google search volume, is still low compared to past bull cycles.

Bitcoin surged to $79,400 at one point on Wednesday and is currently trading around $77,920. Research head Julio Moreno analyzed that this rally was driven by strong demand in the futures market. However, demand in the spot market is decreasing at a moderate pace, raising the possibility of a short-term price correction if investors engage in profit-taking.

On-chain data analysis shows that Bitcoin's supply structure is becoming more robust, centered around long-term holders. In the past 30 days, over 300,000 BTC have moved into the wallets of long-term holders, while short-term investors have reduced their holdings. Notably, Strategy accumulated an additional 53,000 BTC in the last month, absorbing market supply. This phenomenon suggests that the supply leadership of Bitcoin is shifting into the hands of stronger capital.

Bitcoin's current surge is noteworthy as it occurred amidst ongoing geopolitical instability in the Middle East. Despite the conflict between the United States and Iran over the management of the Strait of Hormuz, Bitcoin is charting its own price trajectory, solidifying its status as a store of value. Investors are closely watching whether the index will exit the "fear" stage and if the futures market-led rally will lead to strong buying in the spot market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*