Bitcoin Surges Above $59K as Bull Rally Continues

Bitcoin {{BTC}} surged above the $59,000 level in European morning hours on Wednesday, adding 5% in the past 24 hours and reaching a $1.2 trillion market capitalization.

The price spike came as spot bitcoin exchange-traded funds (ETFs) recorded over $3 billion in cumulative trading volumes on Tuesday, contributing to demand. Some traders also pointed to the bitcoin halving event, expected in April, as a new narrative that causes a pre-halving rally.

Meanwhile, the broader CoinDesk 20 index (CD20) jumped nearly 3%.

Futures bets on lower bitcoin prices took on $25 million in liquidations since Asian morning hours, Coinglass data shows, which may have contributed to the price spike.

Elsewhere, major tokens ether {{ETH}}, Solana’s SOL and XRP gained as much as 3% since Asian morning hours, CoinGecko data shows.

Meanwhile, the fear and greed index, a sentiment metric that tracks the rate of change in asset movement against inherent fundamentals, flashed 82 on Wednesday – implying extreme greed and reaching the highest such level in over a year.

Bitcoin Fear and Greed Index is 82 — Extreme Greed
Current price: $57,085 pic.twitter.com/SeNACNu8s6

— Bitcoin Fear and Greed Index (@BitcoinFear) February 28, 2024

The index is rated on a scale of 0-100, with 0 being the most fearful and 100 being the most greedy. A greedy environment is considered a sign of euphoria, which “means the market is due for a correction,” the index’s developers say.

Traders remain unfazed, however, with some expecting bitcoin to cross its previous highs of $69,000 in March.