Bitcoin has been showing zero price momentum over the past 24 hours, trading around $ 34,600. The crypto market as a whole is in a state where a reversal in either direction is possible. There is no doubt that market participants will react to what is happening on the stock market. The Fed is trying with all its might to prevent panic, so the indices continue to rise. Nevertheless, everyone understands that the market is heavily overbought, and the main question that everyone is asking themselves now is: what exactly can trigger a wide sale in the traditional market, which will drag the crypto market down with it.
The Greed and Fear Index for Bitcoin and the largest cryptocurrencies is at around 25, which corresponds to the “extreme fear” mode, quite straightforwardly reflecting the market situation. Despite the rapid buyback of the coin around $ 30K, risks remain that large investors will start taking profits along with the traditional market. In addition, the crypto community is closely watching the migration of miners from China.
In this context, we can rather talk about the advantages for the market, since even if the cost of Bitcoin mining rises, this can have a positive effect on the coin rate. It is believed that the growth of any physical indicator, including the hash rate or the cost of the coin, can positively affect the price dynamics of the cryptocurrency.
Source: FXPro