This month, the cryptocurrency market is witnessing a notable change in how investors feel. The increase in Bitcoin's price has led to a surge in demand, attracting both big and small investors.
Bitcoin has bounced back by 25% since its lows in early April. Analysis of on-chain data and forecasts from industry experts provide valuable insights into the sustainability of this upward trend.
Market sentiment has shifted from fear to greed according to data from Alternative.me, showing a rise in the Fear and Greed Index from 18 to 72 in April, the highest level since February. This change is evident in both Alternative.me's and CoinMarketCap’s indices, signaling a shift from fear to greed or a more neutral stance among investors.
The positive sentiment among investors is creating room for optimism, with the potential for the market to move towards extreme greed before seeing any significant correction. This shift has resulted in five divergence signals supporting the potential for both Bitcoin and altcoins to continue their recovery.
Evidence from on-chain data shows that large holders have been accumulating Bitcoin, helping it remain above $93,000 in late April. Glassnode's chart indicates a shift from a distribution phase to an accumulation phase during April, coinciding with Bitcoin's recovery.
Moreover, the accumulation trend has spread from large whale wallets to smaller ones, reflecting changing sentiments. Reports from BeInCrypto and statements from Fidelity Digital Assets highlight a rising demand for Bitcoin with decreasing supply on exchanges.
Additionally, ARK Invest has updated its Bitcoin price prediction to potentially reach $2.4 million by 2030 under a bullish scenario. This outlook is based on factors such as increasing institutional investment, Bitcoin becoming a strategic reserve asset for nations, and its expanding role in decentralized finance.
While institutional players like Fidelity and ARK Invest remain optimistic about April, some retail investors are expressing caution due to uncertainties such as tariffs and interest rate changes. The idea of "sell in May" is surfacing among retail investors, reflecting concerns about macroeconomic factors that could significantly impact the market in the near future.