On Thursday, the price of Bitcoin, the leading cryptocurrency, surged to an intraday peak of $62,729 on the Bitstamp exchange.
The largest cryptocurrency is up 26% over the past four days after plunging to $49,557, the lowest level since the start of the year.
As noted by popular cryptocurrency analyst Byzantine General, the cryptocurrency market has witnessed "the most epic" bear trap ever.
Bitcoin collapsed in tandem with global stock markets, but it managed to recover in a swift fashion together with them.
On the daily chart, the cryptocurrency recently recorded its biggest green candle ever in dollar terms.
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JPMorgan attributes this resilience to strong institutional demand. Institutional players showed virtually no de-risking in CME’s Bitcoin futures despite the market mayhem. Notably, BlackRock’s IBIT also saw no outflows during the massive crash, and it’s now back to strong inflows. At the same time, it is worth noting that the Bitcoin price came dangerously close to putting extreme pressure on Bitcoin miners.
As reported by U.Today, Bitcoin market sentiment plunged into “extreme fear” territory following the devastating market crash. However, the fear and greed index is now back in the neutral zone with 48 points out of 100. This is an example of yet another extremely impressive sentiment bounce.
The leading cryptocurrency is currently trading at $60,805 after giving up some of its extremely impressive gains, according to data provided by CoinGecko. It remains to be seen whether or not it will be able to hold this crucial level.
Dan Burgin
Vladislav Sopov