After the first days of July marked by terror for the crypto market, greed and FOMO return with Bitcoin ETFs recording positive inflows.
The analysts observe how the sentiment has changed very quickly in a few days, bringing a wave of uncontrolled enthusiasm.
Bitcoin violently returns above 63,000 dollars, hinting at the intention to reach new highs.
Let’s see all the details below.
Greed and FOMO reign supreme in the crypto market
Incredibly, the sentiment of Bitcoin has shifted in a few days from “extreme fear” to “greed” and FOMO parallel to the return of positive inflows on spot ETFs.
The market had reached its peak of tension in the early days of July, when the governo tedesco announced the start of institutional sales of 50,000 BTC.
In that juncture the cryptocurrency par excellence had quickly lost 10% of its quotations, only to then begin a recovery phase.
In the last week its price has risen by 12%, fully recovering the previous dump and starting a phase of FOMO in the grip of an unstable market.
In a post on July 16, the analysis platform Santiment observed how it would be necessary to act with caution in this moment so reconciled.
According to reports: “ the crowd has collectively become so bull without many signs of fear. ”
Even though greed has returned to reign supreme, there are still some black swans to chase away, such as the imminent Bitcoin liquidations from Mt.GOX.
Santiment also said that the latest bull leg up of the crypto was likely driven by investor optimism following the failed attack on Donald Trump in Pennsylvania
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FOMO has made a return with Bitcoin back at $63.3K. Crypto began rebounding almost precisely after Trump's near assassination Saturday, and it hasn't slowed down since. Cautiousness is recommended when the crowd has collectively become so bullish without many signs of fear. pic.twitter.com/B0AuAqTO1v
— Santiment (@santimentfeed) July 15, 2024
On July 12, Bitcoin had reached the lowest value of the last year regarding the indicator “Fear and Greed Index”, marking panic at 25 points.
In just 4 days, 40 points have been added, bringing the situation back towards greed and FOMO. This is one of the most significant sudden changes in emotion in recent months, capable of completely changing the game.
We will now see in the coming days if the trend of enthusiasm will continue or if fear will once again take center stage.
Source: https://alternative.me/crypto/fear-and-greed-index/
The Bitcoin ETFs show positive data for the 7th consecutive day: yesterday + $300 million
The recent return of the crypto exchanges to greed and FOMO is partly justified by the latest positive inflows recorded by the Bitcoin ETF spot.
According to the charts reported by SoSoValue from July 5 onwards, approximately 1.5 billion dollars have been added to the funds listed on Wall Street.
In the days leading up to the situation, it seems to be totally governed by the bears since, despite the green data at the end of June, the price of Bitcoin remained stagnant downwards.
Now, however, the tensions seem to have subsided and the influences are once again guiding the market trend with BTC having recovered the key level of 60,000 dollars.
Yesterday, capital inflows of 300 million dollars were recorded, with trading volumes exceeding 2.2 billion dollars. On the same day, the price of Bitcoin increased by 6.46%, closing the day at 64,700 dollars.
Source: https://sosovalue.xyz/assets/etf/us-btc-spot
A large part of the success of yesterday’s ETF session is attributable to the activities of IBIT and ARKB, which both brought in inflows of around 117 million dollars.
The fund of Blackrock remains the largest among those focused on Bitcoin with a total value of 20 billion dollars. Grayscale remains in second place with 17.3 billion dollars, while Fidelity closes the podium at 11.29 billion dollars,
More or less all the funds in the ETF market closed at +10% in trading, following the greed and FOMO of the cryptographic squares.
The Total Net Inflow of Bitcoin ETFs now marks a total figure of 16.1 billion dollars with a Total Net Assets equal to 56.7 billion dollars.
Source: https://sosovalue.xyz/assets/etf/us-btc-spot
Bitcoin touches 65,000 dollars and rekindles investor enthusiasm
At 6:00 AM (UTC+2) with the ETF markets closed, Bitcoin was nearing $65,000 in the midst of its peak of greed and FOMO, just before recording a slight retracement.
Now the prices are orbiting around the 63,000 dollar mark, remaining firmly above the daily 50 EMA, ready for another bull run.
The total recovery of the early July dump is an excellent sign of strength for the crypto asset, which will now have to face new challenges on the horizon.
The narrative of the sales of BTC from Mt.Gox, similarly to what happened with the German government, could lead to new short-term turbulence.
Despite this the outlook of Bitcoin seems to have returned positive and marked by FOMO from speculations. In addition to the positive drive of the ETF, we highlight a weak Dollar Index that strengthens the cryptocurrency, and positive institutional flows for the digital asset sector.
Furthermore, the failed attempt to attack Donald Trump seems to have strengthened his position in the election campaign, enough to support the enthusiasm and greed in markets like that of Bitcoin.
Now the next price target for Bitcoin is 72,000 dollars, where there is some attention from the futures traders.
In fact, if the bulls manage to bring the quotations back to that figure, a flood of short liquidations will be triggered, adding more fuel to the bullish fire.
According to what is reported by Coinglass, around $72,000 there are about $20 billion of short positions ready to explode.
It is clear that all eyes are on that level, the overcoming of which could likely open the doors to new historical highs.
Source: https://www.coinglass.com/pro/futures/LiquidationHeatMap
