The longest extreme fear streak of Bitcoin finally breaks

By: Ikenna Odunze

The longest extreme fear streak of Bitcoin finally breaks

July 20, 2022 11:08 AM

Investors can breathe a very small sigh of relief, after 73 days of "extreme fear" on the Crypto Fear and Greed Index.

 

On July 20, Bitcoin finally escaped the "extreme fear" zone after an enormous 73 days, coinciding with a 19% weekly increase in Bitcoin (BTC) as bulls step back into the market to push back the bears.

 

On July 19, the crypto Fear and Greed Index increased from "extreme fear" to merely "fearful",  getting a score of 30 over 100. It has since then, gained little to the current score of 31.

 

The Index analyzes the current sentiment of the overall crypto market, scoring between 0 to 100. The index is focused  mainly on Bitcoin market volatility, volume and dominance, social media sentiment, surveys and search trend data of the top ranked cryptocurrency.

 

Santiment, an on-chain metrics firm, shared on Twitter a tweet that stated traders are “changing their tune” and are beginning to look towards a long-term breakout of bitcoin.

 

According to the analytics firm, Bitcoin (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 in the current market.

 

However, Galaxy Digital CEO Mike Novogratz, who continues to be optimistic for the lead cryptocurrency, said in a Bloomberg conference on June 19 that he expects Bitcoin (BTC) to surge above $500,000 over the next 5 years.

 

             “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, the CEO of Galaxy Digital believes “the worst has happened” already and “now we’re rebuilding with a couple good days in a row. He also noted that there is "a good story with Ethereum and the Ropsten network Merge, the global macro markets are at max bearishness.”

 

Grayscale’s “Bear Markets in Perspective”, on the other hand, report suggests that the current bear market may last for another 250 days.

 

Finder, a product-comparison platform has 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 according to the firm predictions.

 

Nonetheless, Bitcoin is priced at $23,318 at the time of writing and has seen increased daily volume which could indicate the bulls are back in control for the moment.