Bitcoin and other altcoins entered the bloodbath earlier this month.
Things seem to be changing, with Bitcoin and the crypto market in general showing some strength so far.
Over the past few hours, Bitcoin has regained its position above the $38,000 level.
At the time of publishing this article, Bitcoin is trading at 1% at $38,000 with a total market capitalization of $721 billion.
Ethereum is trading above the $2600 level.
Blockchain data platform Santiment reported that despite the recovery, traders continue to be skeptical and afraid of returning to the bloodbath.
He adds that this negative sentiment has a high potential to fuel further price hikes.
Other data shows that with the price of Bitcoin rising, the Fear and Greed Index has fallen from “extreme fear” levels to now “fear” levels.
Bitcoin Fear and Greed Index is 29 – Fear
Current price: $38,073 pic.twitter.com/JiSM7SgZEC
— Bitcoin Fear and Greed Index (@BitcoinFear) January 30, 2022
On the other hand, institutional players continue to dominate Bitcoin activity, as according to Glassnode:
Institutional volume flows continue to dominate bitcoin remittance and transaction volumes, with more than 65% of all transactions over $1 million in value.
The uptrend in institutional dominance in transaction volumes started around October 2020 when bitcoin prices were around $10,000 to $11,000.
Accordingly, according to the same analyzes referred to above, it is the investment institutions that will boost the price of Bitcoin by increasing the demand for it and increasing the arrivals of new institutions, thus increasing the injection of funds into Bitcoin.
But according to some analysts, institutions are still hesitant in their steps towards Bitcoin in light of the lack of regulatory clarity towards the crypto market in many regions around the world.
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