After 73 days of “extreme fear” for bitcoin on the Crypto Dread and Greed Index, investors can now breathe a small sigh of relief.
After a record 73 days, Bitcoin (BTC) officially left the “extreme fear” zone on Tuesday. This was accompanied by a 19 percent weekly rise in Bitcoin (BTC) as bulls started to return to the market.
On July 19, the Crypto Fear and Greed Index rose from “extreme fear” to just “fearful,” scoring 30 out of 100. Since then, it has increased marginally, reaching the present index score of 31.
The Index grades the overall cryptocurrency market’s current sentiment on a scale of 0 to 100. The index is mostly based on information on search trends, social media mood, surveys, and the volatility, volume, and dominance of the Bitcoin market.
Santiment, an on-chain analytics company, observed on Twitter that traders are “changing their tune” and beginning to anticipate the cryptocurrency’s long-term breakout.
The company claims that when BTC’s price goes beyond $23,600, the average financing rate on exchanges has reached its best levels in the last two months. This could mean that there is some FOMO (Fear of Missing Out) going on.
Mike Novogratz, CEO of Galaxy Digital, continued to express confidence in bitcoin (BTC), saying at a Bloomberg conference on June 19 that he anticipates the price of BTC to rise above $500,000 within the next five 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.
Additionally, according to Novogratz, “the worst has happened” and “we’re rebuilding with a few nice days in a row.” The global macro markets are at their most negative, he added, thus there is “a strong story with Ethereum and the Merge.”
The current bear market, however, may continue for another 250 days, according to Grayscale’s “Bear Markets in Perspective” study.
A similar forecast was made as part of a survey on Bitcoin predictions by product comparison site Finder on July 12. Five Fintech experts from Finder and 53 industry professionals predicted that BTC would bottom out at $13,676 before beginning an upward trend toward $100,000 before 2025 and $300,000 by 2030.
As of the time of writing, the price of one bitcoin is $23,318.