The cryptocurrency market capitalisation soared by 4% over the day to $4.07 trillion. The capitalisation has soared into the extreme zone, above which it was only briefly in mid-August and mid-September. Cryptocurrency investors are convinced that the US government shutdown is not dampening risk appetite, and macroeconomic data is pushing the Fed to ease its policy further.
The sentiment index rose to 64 (greed), reaching its highest level in the last six weeks. However, the index is far from extreme greed, leaving significant potential for further strengthening.
On Thursday morning, Bitcoin exceeded $118K, surpassing the previous highs, which indicates an important technical breakthrough of the established range. The next step could well be an attempt to update historical highs approaching $125K. At the same time, it is worth paying attention to the activity of long-term sellers, who have been actively selling near these levels since July: we may see a new episode of selling on the rise.
Read more: fxempire.com
