High Levels Of FOMO Track Bitcoin Rally Halt After BTC Rises Above $64,000

The last ten days or so have been quite positive for bitcoin, with the asset adding nearly ten thousand euros in that time period, mainly fueled by the US Federal Reserve’s decision to cut interest rates. ‘key interest.

However, certain social metrics suggest that the cryptocurrency’s run could be over, at least in the short term.

FOMO To Stop BTC Uptrend?

It was last Wednesday, September 11, when the price of bitcoin fell sharply after the release of the US CPI numbers. At that time, the asset was reduced to $55,500. However, it went on the offensive in the following days amid continued speculation about the Fed’s next move.

A week later, the US central bank decided to change from its four-year monetary strategy and cut interest rates in a move that mimicked the ECB, the Bank of Canada and the Bank of England.

After the inevitable immediate volatility for BTC and other markets, the cryptocurrency reacted well and gained almost five thousand in a few days, rising from $59,500 to a three-week high of $64,000. However, its rally has stalled for now and the asset is back to just under $63,000.

Santiment’s data suggests that this cooling could be followed by an even more violent pullback due to social media interactions. FOMO (Fear of Missing Out) levels have soared this week to the fourth highest since the start of the year. Typically, these rapid increases are followed by corrections, as happened after the ATH in March, and rallies in early June and late July.

With a very bullish week of crypto transitioning into weekend mode, @santimentfeed has seen an increase in very bullish crowd sentiment. Understandably, the crowd has reason to be optimistic about Bitcoin and others continuing to rise after the Fed’s first rate cuts in 4.5 years… pic.twitter.com/KTosasj6tS

— Santiment (@santimentfeed) September 21, 2024

Santiment cautioned that the crypto market is particularly susceptible to such reactions and typically tends to go in the opposite direction.

Return to neutral

The Fear and Greed Index, which measures various information such as social media interactions, price movements, surveys, etc., to determine current sentiment towards the industry, has risen 21 points in the past few days.

It was back in “fear” status (33) on September 17 (the day before the rate cuts), but has risen to a multi-week high of 54 (neutral). Remember that the price of BTC dropped from $65,000 to less than $52,000 just a few weeks after the last time the index rose so high in such a rapid manner.

Index of fear and greed. Source: Alternative.me SPECIAL OFFER (sponsored) Binance Free $600 (exclusive of CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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