With a 19% weekly increase in Bitcoin (BTC) as bulls make their way back to the market. Finally on Tuesday Bitcoin (BTC) escaped the “extreme fear” zone after a whopping 73 days, on the Crypto Fear and Greed Index. Investors can breathe a very small sigh of relief.
The Crypto Fear and Greed Index increased from “extreme fear” to merely “fearful” on July 19, accomplishing a score of 30 out of 100. It has expanded slightly since then to the current index score of 31.
The Index analyzes the existing sentiment of the overall crypto market, scoring between 0 to 100. The index is built mainly on Bitcoin market volatility, volume and dominance, social media sentiment, surveys, and search trend data.
On-chain metrics firm Santiment tweeted that traders are “changing their tune” and are starting to look toward a long-term getaway from the cryptocurrency.
BTC’s average funding rate on exchanges has hit its highest levels in the last two months as BTC’s price rises above $23,600 — which could indicate a level of Fear of Missing Out (FOMO) is present, according to Santiment.
Galaxy Digital CEO Mike Novogratz continues to tout optimism for the lead cryptocurrency, saying that he expects BTC to surge above $500,000 within the next 5 years, on 19th June at a Bloomberg coinference.
“This is a story of two things — it is about adoption and global economics. And while this is a bump in the road in adoption, it is certainly not a U-turn”.
“We continue to see institutions […] that haven’t gotten involved yet, who see this as an opportunity,” he added.
Novogratz also believes “the worst has happened” and “now we’re rebuilding with a couple of good days in a row. He also noted that there is “a good story with Ethereum and the Merge, the global macro markets are at max bearishness”
On the other hand, Grayscale’s “Bear Markets in Perspective” report recommends that the current bear market may last for another 250 days.
Product-comparison platform Finder made a similar prediction as part of a Bitcoin prediction survey on July 12, with five Fintech professionals at Finder and 53 industry experts suggesting that BTC will bottom out at $13,676 before making an uptrend towards $100,000 before 2025 and $300,000 by 2030.
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