Bitcoin’s Longest ‘Extreme Fear’ Streak Finally Breaks
Bitcoin (BTC) on Tuesday finally escaped the “extreme fear” zone after a full 73 days, coinciding with a 19% weekly gain in Bitcoin (BTC) as bulls make their way back into the market.
The Crypto Fear and Greed Index rose from “extreme fear” to just “scared” on July 19, reaching a score of 30 out of 100. It has risen slightly since then to the current index score of 31.
The index analyzes the current sentiment of the overall crypto market, scoring between 0 to 100. The index is mainly based on volatility, volume and dominance of the Bitcoin market, social media sentiment, surveys and search trend data.
On-chain metric company Sentiment on Twitter noted that traders are “changing their tune” and starting to look toward a long-term breakout of the cryptocurrency.
According to the firm, BTC’s average funding rate on exchanges has reached its highest levels in the past two months as BTC’s price rises above $23,600 – which could indicate a level of Fear of Missing Out (FOMO) is present.
Traders change tune and smell a long-term breakout after a dominant #Bitcoin Tuesday. With the market value number 1 in #crypto undulating, the relationship between $BTC #longing and #shorts is at its highest since early May. Look for #FOMO. pic.twitter.com/dSPmazk1S1
— Santiment (@santimentfeed) July 19, 2022
Galaxy Digital CEO Mike Novogratz continues to spread optimism for the leading cryptocurrency, telling a Bloomberg conference on June 19 that he expects BTC to rise above $500,000 in the next 5 years.
“This is a story about two things – it’s about adoption and the global economy. And while this is a bumpy road in adoption, it’s certainly not a U-turn”.
“We continue to see institutions […] who haven’t gotten involved yet, who see this as an opportunity,” he added.
Novogratz also believes “the worst has happened” and “now we are rebuilding with a couple of good days in a row. He also noted that there is “a good story with Ethereum and the merger, the global macro markets are at maximum bearishness.”
Related: Is the bottom in? Raoul Pal, Scaramucci loading up, Novogratz and Hayes weighing in
On the other hand, Grayscale’s “Bear Markets in Perspective” report suggests that the current bear market may last another 250 days.
Product comparison platform Finder made a similar prediction as part of a July 12 Bitcoin Prediction Survey, with five Fintech experts at Finder and 53 industry experts suggesting that BTC will bottom out at $13,676 before uptrending towards $100,000 before 2025 and $300,000 by 2030.
Bitcoin is priced at $23,318 at the time of writing.
