Bitcoin's Confidence Index Soars to 0.75 as Price Surges

Bitcoin's investor confidence has been robust recently, with the Confidence Index reading at 0.75. The cryptocurrency gained 0.92% over the last 24 hours, marking the first time in two weeks that Bitcoin [BTC] noted gains on two consecutive days. At the time of writing, Bitcoin [BTC] was trading at $97,640, following a 1% hike on the charts, extending its bullish outlook on the weekly charts.

Despite Bitcoin's sideways trading, some stakeholders remain optimistic. CryptoQuant analyst Frost projected confidence, indicating that investor confidence remains strong across the market. Frost posited that prevailing market conditions suggest Bitcoin investors still expect the crypto's price to recover. While a high confidence index usually occurs in a bull market, once it approaches 1, a market top follows. At the time of writing, the confidence index sat at around 0.75.

Conversely, when these indicators fall to almost zero, it has always signaled a potential market bottom. At the time of writing, the index seemed to be approaching that threshold, suggesting a potential long-term accumulation opportunity may be around the corner. While the market has significant bullish momentum right now, it is yet to reach extreme euphoria.

Bitcoin's long-term holder's supply has continued to rise, signaling strong confidence among LTHs. When this is rising, it means that long-term holders are not selling their BTC, indicative of strong market confidence. Additionally, Bitcoin's NUPL has remained within the belief/denial phase, signaling growing investor positive sentiments. Most of the holders are in profit and still believe in the rally. Historically, BTC has surged whenever the NUPL has been at this level.

Bitcoin's return on investment is still highly attractive to investors. The long-term Sharpe ratio turned positive, implying that the risk to investment for BTC is lower compared to traditional assets. With a value of 0.775, the Sharpe ratio seemed to suggest that investors may be highly confident about BTC's market returns. Simply put, Bitcoin is still backed by strong investor confidence. With long-term holders still bullish, BTC may be well-positioned for more growth. If current conditions hold, we could see the cryptocurrency reclaim $99,436 and attempt $100k once again. However