Experts warn of ‘extreme greed’ territory for bitcoin as crypto pushes toward $60,000

Experts warn of ‘extreme greed’ territory for bitcoin as crypto pushes toward $60,000

 

 

The world’s top cryptocurrency continues to rise, as bitcoin price surpasses $58,000 per coin; marking a nearly 26% surge for the month to date.
Experts warn, however, that the sharp increase may lead to a sell-off.

Bitcoin was trading around $58,000 as of 6:00 GMT on Thursday, up about 5% from the previous close.

 

It dipped below $55,000 briefly on Wednesday, after trading in a tight range over the past few days.

 

Some analysts claim the current rally is driven by increased speculation around the possibility of a bitcoin exchange-traded fund (ETF); which could spring up if greenlighted by the US Securities and Exchange Commission (SEC) as early as this week.

ALSO READ: Nearly 90% of bitcoin have been mined, new coin issue unlikely after 2140 – analysts

 

However, many are skeptical whether the approval will have a beneficial effect on bitcoin’s price.

 

Crypto analysts say the extreme buying in the market could mean the rally may soon run out of steam.

 

According to the Fear & Greed Index, a tool used by investors to gauge whether the market is fairly priced, bitcoin entered ‘extreme greed’ territory last week, and is at the highest level since early September; which preceded a sharp sell-off and may signify another one approaching.

 

The cryptocurrency is still about 8% below its all-time high of around $65,000 in April; but has nearly doubled in price since the July low of under $30,000.

About The Author

Osigweh Lilian Oluchi is a graduate of the University of Lagos where she obtained a B.A (Hons) in English, Masters in Public and International affairs (MPIA). Currently works with 1stnews as a Database Manager / Writer. [email protected]

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