Bitcoin dip below $67K sparked surge in buying.
Second-largest buying increase in two months.
FOMO, dip-buying, and economic factors influence Bitcoin’s price.
Bitcoin’s second dip below $67,000 this week sparked a frenzy of buying, marking the second-largest surge in crowd interest in two months. Did FOMO or bargain-hunting fuel this buying spree? Or perhaps a mix of both?
According to the data provided by blockchain analysis platform Santiment in an X post, Bitcoin’s price falling below $67,000 resulted in a greed sentiment in the market.
🤑 Bitcoin's second stop below $67K Thursday resulted in the 2nd largest spike in crowd $BTC buying interest in the past 2 months. FOMO and greed comes in two ways:1) Price erupts and traders want to jump in with hopes of prices continue climbing (as we saw on May 20th)2)… pic.twitter.com/44O8Y3kSiD
— Santiment (@santimentfeed) June 14, 2024
Santiment stated that greed and the fear of missing out arise in the market under only two conditions. The first condition is when “price erupts and traders want to jump in with hopes of prices continuing to climb,” a situation seen on May 20th when Bitcoin reclaimed the $71,000 price level.
While FOMO and bargain-hunting may be driving some of the recent Bitcoin buying frenzy, it’s worth noting that broader macroeconomic factors are also at play. The price of risk assets, like stocks and cryptocurrencies, often faces downward pressure as interest rates rise.
This is because higher interest rates make traditionally safer investments, such as cash and U.S. Treasuries, more attractive. Conversely, investors anticipate a potential boost for risk assets as the Federal Reserve eventually loosens monetary policy.
According to CoinMarketCap data, the price of BTC stands a tad below $67,600 at the time of writing, as the leading cryptocurrency tries to fight to keep this price level and make a move towards the $70,000 price level once again.
In the past 24 hours, the trading volume of Bitcoin went down by 25.93% and is currently standing at $26.6 billion with a market capitalization of $1.322 trillion. The digital asset is up 7.08% in the past 30 days and has printed 159.08% gains since June 2023.
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