The price increase occurred due to demand generated by spot bitcoin exchange-traded funds (ETFs), which on Tuesday had cumulative trading volumes of over $3 billion. Some traders also attributed a pre-halving spike in bitcoin to the anticipated halving event in April.

According to Coinglass data, futures bets on lower bitcoin prices have taken on $25 million in liquidations since Asian morning hours, which could have contributed to the price rise.
According to CoinGecko data, other significant tokens like ether (ETH), Solana's SOL, and XRP have increased by up to 3% since the early hours of Asia.
 

In the meantime, on Wednesday, the fear and greed index—a sentiment indicator that measures how quickly asset movement deviates from underlying fundamentals—flashed 82, signaling extreme greed and hitting its highest level in more than a year.

The index is ranked from 0 to 100, where 100 represents the most greed and 0 represents the greatest fear. According to the index's creators, a hungry environment is indicative of vitality and "means the market is due for a correction."