Top 4 reasons why a crypto rally has ignited today

A crypto rally has ignited this week, with Bitcoin price surging above the important resistance level at $93,000 and the market capitalization of all coins rising by over $200 billion to $3.1 trillion. Some of the top cryptocurrencies like Sui, Pudgy Penguins, Virtuals Protocol, and Chainlink were among the top gainers today. Here are some of the top reasons behind the crypto market rally.

Crypto rally happening as Fear and Greed Index is rising

The crypto rally is happening as the Crypto Fear and Greed Index rebounds from its lowest level last month. It has jumped by to 22 from the year-to-date low of 8, which it tested last month. 

Crypto Fear and Greed Index

As the chart below shows, the Crypto Fear and Greed Index has formed what looks like a double-bottom pattern, meaning that it may continue rising in the coming weeks. Such a move will lead to more gains in the crypto industry.

Historically, it is usually more profitable to buy cryptocurrencies when the index is on the extreme fear zone compared to when it is in the extreme greed area.

Vanguard effect is going on

The crypto rally is also happening because of Vanguard, the second-biggest company into the asset management industry. In a statement this week, the company said that it would start offering crypto assets on its platform, something it has avoided even as some top competitors like BlackRock and Franklin Templeton launched products.

Vanguard will not launch its crypto ETFs for now. Rather, the company will make it possible for users to buy ETFs and mutual funds provided by other companies like BlackRock and Canary.