In the past couple of weeks, the Bitcoin (BTC) price has resurged later on months of apparent monetary stagnation. Since July 23, the value of a unmarried Bitcoin has risen past effectually 20%. Not only that, after trading sideways since its supply squeeze in early May, the premier currency broke through its earth-shaking $ten,000 psychological threshold, thus leading many coincidental investors to over again jump back on the crypto hype train.

Bitcoin's recent price hike has also resulted in a retail boom, with a whole host of trading platforms beyond the world reporting sky-high Bitcoin trading volumes. Every bit a effect of this bullish marketplace activity, Joe DiPasquale, prominent crypto pundit and CEO of BitBull Majuscule, recently stated that this latest surge is once again edifice up an element of FOMO, or fearfulness of missing out, among casual investors who believe they might be belatedly to the crypto political party.

Echoing a somewhat similar sentiment, Joshua Frank, co-founder and CEO of The Tie — a provider of data assemblage tools — commented to Cointelegraph that historically speaking, volatility has driven significant new waves of interest and investors into Bitcoin, particularly with the most contempo run from $nine,000 to $12,000. Frank outlined that the 30-day boilerplate number of Twitter users discussing Bitcoin has spiked from 24,000 to 30,000 over the concluding two weeks, adding:

"Bitcoin striking its highest daily tweet volume level since June 26th 2022 in the wake of the Twitter scam on July 16th. While it isn't clear that the run-up had any correlation to the scam, we have seen in the past that, all else equal, the more users talking most Bitcoin the meliorate the asset performs."

Price vs. tweet volume

Denis Vinokourov, caput of enquiry at BeQuant, a crypto exchange and institutional brokerage service, told Cointelegraph that since volatility picked up, his firm has observed trade volumes jumping by about 40% from where daily summer averages were prior to this contempo rally.

Superlative cryptocurrencies are mobilizing fast

Cointelegraph also discussed the recent market action with Adam Vettese, market analyst at cryptocurrency trading and investment platform eToro. He pointed out that since crypto prices began rallying at the end of July, the number of crypto positions existence opened increased past 115% versus the previous fortnight. Over the same time period, trading volume in crypto instruments also increased by 162%. The number of Bitcoin positions opened increased by 222% with a 421% rise for Ether (ETH) and 170% for XRP.

Most invested crypto assets on eToro

Christophe Michot, sales director at digital asset trading platform CrossTower also claimed that over the course of the past couple of weeks, his firm has observed a 219% increment in daily trading volume equally well equally a 66% rise in the number of daily average signups over the same time period.

Michot too highlighted that since the pullback in mid-March, the marketplace as a whole has experienced a strong bullish reversal. For example, Bitcoin has regained over 210% and Ethereum bounced past 364% since the "Black Th" crash of March xi, 2022.

The crypto marketplace rally has come on the heels of positive news such every bit the U.S. OCC's recent description permitting the custody of Bitcoin past banks as well as the announcement of another stimulus package to exist issued by the Fed in the near future, which some experts believe volition continue to devalue the U.South. dollar.

People's sentiment regarding crypto is soaring

On July 12, Bitcoin's long-term sentiment score — a comparing of investor sentiment over the terminal 50 days vs. the prior 200 — hit a new all-time high leading upward to Bitcoin'south run at the end of the month. Similarly, the daily sentiment score represents a measure of how positive or negative conversations on Twitter have been about a particular coin over the last 24 hours vs. the previous 20 days.

Bitcoin price vs. long-term sentiment score

The daily sentiment score of investors has remained positive (above 50) every day from July 20 to Aug. 1. Even subsequently Bitcoin failed to surpass the $12,000 marking and retraced by $1,400, investor sentiment fell below 50 for merely about 28 hours, alluding to the fact that investors accept remained extremely positive on Bitcoin.

Frank told Cointelegraph that approximately 68% of all tweets discussing the long-term financial future of Bitcoin over the past month accept been positive. Similarly, Michot added that according to CrossTower'south media data, the market is in the early on stages of a new bull run, calculation: "Another positive sentiment is coming from family offices and other traditional advisory firms. These firms are seeing increased demands by clients seeking exposure to the cryptocurrency markets."

Other crypto-related offerings are likewise flight high

Since the get-go of the recent crypto surge, in that location has been a spike in the utilize of stablecoins along with a clear increase in need for other DeFi-related tokens. John Todaro, manager of institutional enquiry at TradeBlock, a trading platform for institutional investors, told Cointelegraph:

"Stablecoin circulating supplies have increased substantially over the by 6 months, with Tether seeing around $10bn in deposits and USDC seeing over $1bn. This may seem small-scale, only those deposits make Circle and Tether, to an extent, defacto banks with sizable customer deposits. $5–ten bn in customer deposits is equivalent to a small to midsize U.S. commercial bank."

Todaro added that while merchant adoption still remains limited for stablecoins, there is real demand for these assets in developing economies as well every bit those with political instability, such as in Latin America, parts of the Middle East, and to an extent, Hong Kong. He also noted that derivatives volumes have spiked recently (at Deribit, CME and others), just a large portion of that is tied to price action, as increased volatility about always tends to drive increased trade volumes.

Vinokourov believes that the recent spell of low volatility and thin trading volumes has evolved into one of the busiest periods for digital assets in recent retentiveness: "Volumes on spot and derivatives venues spiked higher every bit Bitcoin traded over $xi,000, and other large cap assets followed in lockstep." Vinokourov further opined:

"Particular attention ought to be paid to the evolution of Ethereum volatility profile which, despite coming off recent highs, remains elevated relative to Bitcoin. This suggests more potential volatility for the second largest cryptocurrency."

BTC Fear and Greed Alphabetize's correlation with its price

Some other attribute worth exploring is the human relationship that may or may not exist between Bitcoin'due south Fear and Greed Index and its toll, and if the metric can advise a possible price direction. Expounding his views on the thing, Todaro opined that the index is calculated based on a few variables that are, to an extent, affected by price, forcing the index to follow sure niche inputs such equally the velocity of price gains, all-time loftier prices and price momentum, among other parameters.

2020 Bitcoin price vs Fear and Greed Index

For example, if at that place is a large crash in the market, volatility volition increment, and the index will conclude that the market has loftier fear. In doing so, the index ultimately follows the price. Additionally, the index captures Google trends, with high interest in positive crypto-related terms pregnant high greed. Therefore, Todaro believes that the index can be used to make current and future investment decisions:

"While the price of Bitcoin isn't back to all-time highs, this was the fastest price gain over a 10-twenty-four hour period period in its history, which would read extremely greedy, and then mayhap it is time to sell and wait for a pullback to re-enter."

Another correlation worth exploring is the one between Bitcoin and the S&P 500. Co-ordinate to Quantum Economics founder Mati Greenspan, the previously high correlation between crypto-assets and the Due south&P 500 has at present decreased:

"We tin can clearly meet earlier this year, where the correlation spiked upward to 0.6 due to the multi-asset early-pandemic sell-off. By now, however, we're once again below 0.ii, which basically means that there is no correlation on a day-to-twenty-four hour period basis anymore."

Furthermore, Greenspan noted that even a height of 0.6 merely represents a very loose correlation, adding, "Many stocks take a very high correlation with each other, commonly above 0.8 even if they're in completely different industries, and many altcoins are similar."

90- day pearson correlation between Bitcoin and S&P 500