Bitcoin Holds Near $79,000 After a 23% Week as Sentiment Gauge Reaches 74

Bitcoin held above $79,000 on Wednesday after a week of sharp gains, while ether and solana slipped as traders took profits. CoinDesk reported that every major token fell over 24 hours except HYPE, with bitcoin still up 23% on the week and XRP up almost 45%. The token briefly traded above $81,000 on Tuesday before falling back below that level.

Positioning explains much of the move. More than $4 billion of bearish positions were liquidated as prices rose, and United States spot bitcoin exchange-traded funds attracted $1.92 billion of net inflows last week. The Fear and Greed Index, a composite sentiment measure, reached 74 on Tuesday after sitting at 27 less than two weeks earlier, which CoinDesk notes is the highest reading since shortly before a $19 billion liquidation event in October.

Bitcoin remains well below the $94,820 level it reached in mid-January. Gold and silver, the traditional monetary metals, have followed a different path. Gold traded around $4,650 an ounce on Tuesday, while silver held in the high $60s, far below the roughly $121 an ounce it reached on January 29.

The divergence is the point. Bitcoin's advance began when risk appetite returned and short positions were forced to cover, not when monetary uncertainty peaked. Gold's steadiness through the same period reflects a different buyer with a different motive.