A spike in Bitcoin prices has pushed traders' sentiment to levels not seen in 16 months.
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Bitcoin's recent rise of 20% in three weeks has significantly improved traders' sentiment. Bitcoin was trading at $67,708 on July 27, up 6.22% from July 25, according to Santiment. The weighted sentiment index, which measures the ratio of positive to negative comments about Bitcoin on social media, hit a 16-month high in positive sentiment.
The main reason for the increase in positive sentiment was the anticipation of former US President Donald Trump's speech at the Bitcoin Conference 2024 in Nashville, where he announced his goal of making the United States the “Crypto Capital of the World.” Trump also predicted that Bitcoin will one day overtake gold.
Following his speech, Senator Cynthia Lummis introduced the "Strategic Bitcoin Reserve" bill, proposing that the US government buy 5% of the world's Bitcoin supply and hold it for at least 20 years.
The Crypto Fear and Greed Index rose to a Greed score of 71, up 24 points since June 28. Meanwhile, just a month ago, the index was showing a surge in negative comments when Bitcoin was trading around $65,000.
