Bitcoin’s longest streak of ‘extreme fear’ finally breaks
After 73 days of “extreme fear” on the crypto fear and greed index, investors can breathe a sigh of relief.
Bitcoin (BTC) on Tuesday finally emerged from the “extreme fear” zone after a whopping 73 days, coinciding with BTC’s 19% weekly gain as bulls return to the market.
The Crypto Fear and Greed Index increased from “extreme fear” to just “fear” on Tuesday, hitting 30 out of 100. It has since risen slightly to the current index of 31.
The index analyzes the current mood of the entire cryptocurrency market, ranking it on a scale from 0 to 100. The index is based mainly on the volatility, volume and dominance of the bitcoin market, social media sentiment, polls, and search trend data.
Online metrics company Santiment noted on Twitter that traders are “changing their tune” and are starting to look to a long-term breakout for the cryptocurrency.
According to the firm, the average BTC funding rate on exchanges has hit its highest level in over two months as the price of BTC rises above $23,600, which could indicate fear of missing out (FOMO).
“Traders are changing their tune and smelling a long-term breakout after bitcoin’s dominant rise on Tuesday. The No. 1 crypto asset by market capitalization has the ratio between long and short assets in BTC at its highest level since the beginning of May. Keep an eye on FOMO,” Santiment said in a post.
Galaxy Digital CEO Mike Novogratz continues to tout optimism for the leading cryptocurrency, saying at a Bloomberg conference on Tuesday that he expects BTC to top $500,000 over the next 5 years.
“This is a story about two things – acceptance and the global economy. And while this is a bump on the road to adoption, it’s certainly not a U-turn. We continue to see institutions […] that have not yet taken part and that see this as an opportunity,” he added.
Novogratz also believes that “the worst has already happened” and “now we are recovering with a couple of good days in a row.” He also noted that there is “a good story with Ethereum and the merger, global macro markets are at maximum bearishness.”
On the other hand, Grayscale’s “Bear Markets On The Way” report suggests that the current bear market could continue for another 250 days.
Product comparison platform Finder made a similar prediction as part of a survey on July 12: Five Finder fintechs and 53 industry experts suggest that BTC will bottom out at $13,676 and then enter an uptrend to $100,000 by 2025 and $300. 000 dollars by 2025-2030.
Bitcoin is worth $23,530 at the time of writing.