Since last Thursday, Bitcoin has achieved an impressive 20% price increase, leading many to wonder if it might be time for the market to take a breath. Matrixport’s Bitcoin Greed & Fear Index (GFI) suggests this may be the case, as it has skyrocketed to 93% from below 10% just a week ago. This crucial index serves as an indicator of the overarching market sentiment, with readings above 90% reflecting extreme greed or excess optimism, while those below 10% portray intense fear or pessimism. According to Markus Thielen, Head of Research and Strategy at Matrixport, “Our Bitcoin Greed & Fear Index has reached exuberant levels in record time. It could be well advised to lock in some gains for short-term traders.”
In other news, the Nevada Department of Business and Industry recently announced that crypto custody company Prime Trust is experiencing “a shortfall in customer funds,” struggling to meet customer withdrawal demands this month. The Financial Institutions Division, which oversees state-regulated trust companies, has ordered Prime Trust to halt all activities violating Nevada regulations. This comes amid allegations that the firm’s overall financial condition has deteriorated to “a critically deficient level”; Prime Trust may even be insolvent.
In the world of traditional finance, banking heavyweight JPMorgan has expanded the reach of its blockchain-based JPM Coin to include euro-denominated payments, as reported by Bloomberg. With German tech firm Siemens making the first euro payment on the platform, JPM Coin has now facilitated over $300 billion in transactions since 2019, making it one of the most extensive uses of blockchain technology by a conventional financial institution. This innovative system enables JPMorgan’s institutional clients to make wholesale payments between accounts worldwide through the power of blockchain technology.
Large transactions and the accumulation of Bitcoin by “whales” have recently caught the attention of analysts. Notably, a recent chart from IntoTheBlock shows an increase in net inflows into addresses holding 0.1% or more of the total BTC supply since January, with large holder addresses recently reaching a staggering year-to-date high of 114,630 BTC. However, the accumulation found in this data does not appear to be exchange-related, according to IntoTheBlock’s latest newsletter, as Centralized Exchange (CEX) net flows were negative while large holder flows remained significantly positive.
While enthusiasm surrounding Bitcoin’s impressive gains and the expansion of JPM Coin dominate the headlines, caution is necessary, especially in the face of potential setbacks like Prime Trust’s recent financial troubles. The dynamic world of cryptocurrencies continually proves to be a mixed bag of excitement for enthusiasts and skeptics alike.
Source: Coindesk
