Bitcoin Fear and Greed Index has risen to 48, a level considered neutral, coming from fear or extreme fear in the past three months.
BTCUSD is down -0.38%
The surge follows a rise in market capitalization which is currently at around $2 trillion after a market crash at the start of the year.
The change reportedly corresponds to a shift in market sentiment but does not eliminate the possibility of returning to red.
The index reached 45 on December 22 before bitcoin jumped from $46,000 to $52,000 and embarked on a trend of lower highs and lower lows afterwards.
Digital asset trading firm QCP Capital notes that the upward momentum in cryptocurrency is attributed to cryptocurrency demand at the moment.
The firm expects the trend to continue as there is no significant macro factor. BTC is currently trading at a correction around the $43,000 level. The token tested the $45,000 but did not reclaim it.
The Bitcoin Fear and Greed Index shows the general market sentiment towards bitcoin through surveys, factors like volatility, social media activities, and dominance.