Bitcoin sentiment has undergone a dramatic shift in recent days, with key indicators flashing “greed” and “fear of missing out” (FOMO) as the cryptocurrency market experiences a sharp uptick. This positive sentiment coincides with a significant increase in inflows into Bitcoin exchange-traded funds (ETFs).
Market Sentiment Swings from Fear to Optimism
Crypto analytics platform Santiment highlighted the rapid change in sentiment, noting a shift from “extreme fear” to “greed” within a few days. This bullish reversal has prompted Santiment to advise caution, emphasizing careful consideration by investors when “the crowd has collectively become so bullish without many signs of fear.”
Santiment attributes some of the newfound optimism to investor anticipation of a potential Donald Trump victory in the upcoming US election, given his perceived crypto-friendliness alongside his running mate JD Vance.
Bitcoin Price Soars, ETF Inflows Reach $300 Million
Backing the improved sentiment is a notable rise in Bitcoin’s price. The cryptocurrency has gained over 12% in the past week, currently trading at $64,508. This price surge aligns with the sentiment shift reflected in the Crypto Fear & Greed Index.
Further bolstering the positive outlook are Bitcoin ETFs. These investment vehicles saw a significant influx of capital on July 15th, with eleven spot Bitcoin ETFs collectively recording net inflows exceeding $300.9 million. Notably, BlackRock and Ark 21 Shares funds led the pack with identical inflows of $117.2 million each.
Also Read: BlackRock CEO Goes Crypto: Bitcoin (BTC) Soars 5.63% As Larry Fink Calls It “Must-Have” Asset
Bitcoin Rebounds from Recent Lows
This bullish momentum comes after a period of decline for Bitcoin. The price dropped to a low of $53,500 on July 5th, impacted by factors such as German government-linked Bitcoin sales and anxieties surrounding the repayment of $8.5 billion in Bitcoin to creditors of collapsed crypto exchange Mt. Gox.
However, Bitcoin’s successful recapture of territory above $62,000 has led several analysts to believe the worst of the recent downturn may be over, potentially due to an improving macroeconomic environment.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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