Bitcoin’s second dip below $67,000 on Thursday triggered the second largest spike in crowd buying interest over the past two months.
This surge reflects the Fear of Missing Out (FOMO) and greed that traders experience in volatile markets.
There are two primary ways FOMO and greed manifest in Bitcoin trading:
1. Price Surges: Traders rush to buy Bitcoin when prices rise, hoping for continued upward momentum, as observed on May 20th. 2. Price Dips: Traders perceive a price drop as an unwarranted dip and buy in anticipation of a quick recovery, similar to the activity seen on June 13th.
🤑 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
Bitcoin ETFs Net Inflows Turns Negative Again, Something To Worry About?
On June 13, 2024, Bitcoin ETF net inflows turned negative again, totaling -$226 million, after just one day of positive inflows. Among the Bitcoin ETFs, BlackRock’s IBIT was the only one to experience an inflow. However, nine other Bitcoin ETFs saw significant outflows, with Fidelity’s FBTC leading the way at $106.4 million, followed by Grayscale’s GBTC with $61.5 million.
🚨 $BTC #ETF Net Inflow June 13, 2024: -$226M!
• The net inflow turned negative again after just 1 day of being positive.
• Only #BlackRock (IBIT) had an inflow yesterday.
• Among 9 other Bitcoin ETFs, #Fidelity (FBTC) experienced the largest outflow of the day with… pic.twitter.com/r9BY5M2GAU
— Spot On Chain (@spotonchain) June 14, 2024
This pattern of inflows and outflows indicates a highly reactive market, with traders quickly shifting their positions based on short-term price movements. The volatile behavior underscores the ongoing uncertainty and speculative nature of the Bitcoin market.
Despite these fluctuations, the recent buying interest suggests that many traders remain optimistic about Bitcoin’s long-term prospects. As institutional interest continues to grow and new financial products are introduced, the market dynamics are likely to evolve further.
In conclusion, Bitcoin’s recent price movements and the corresponding surge in buying interest highlight the volatile and speculative nature of the market. Traders’ reactions to both price surges and dips reflect a mix of FOMO and greed, driving rapid shifts in market sentiment.
As Bitcoin continues to attract attention from both retail and institutional investors, understanding these behavioral patterns will be crucial for navigating the market’s ups and downs.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!
Image Source: imagineseven/123RF // Image Effects by Colorcinch
The post Bitcoin Sees Surge In Buying Interest Amid Volatile Market Movements appeared first on The Merkle News.
