Bitcoin’s Year-End Fizzling Sees Sentiment Plummeting to Levels Last Seen in October
The Crypto Fear & Greed Index has plummeted back to levels last seen in October, as the price of Bitcoin experiences a significant slump in the final days of 2024.
Market Sentiment Plummets to 65
According to the latest update from CoinGecko on December 30th, the Crypto Fear & Greed Index has dropped to 65. This score indicates that market sentiment is still within greed territory but marks the lowest point since October 15th. The index had consistently stayed above 70 through November and December, following President-elect Donald Trump’s election victory and the influx of pro-crypto politicians into the Senate and House of Representatives.
Bitcoin Price Slumps by 13.7%
The price of Bitcoin (BTC) is currently hovering around $93,000, down 13.7% in the last 12 days. This significant drop has led traders to warn of a "huge dump" amid a rush to stablecoins. The decline has sparked concerns among investors and analysts, who are now bracing themselves for potential volatility.
Markets in Turmoil: What’s Behind the Bitcoin Price Drop?
The Crypto Fear & Greed Index is calculated based on various signals that impact traders’ and investors’ behavior, including:
- Google Trends: an indicator of market interest and attention
- Surveys: providing insights into market sentiment and opinions
- Market Momentum: analyzing price movements to gauge investor confidence
- Market Dominance: assessing the dominance of Bitcoin within the cryptocurrency market
- Social Media: monitoring online discussions and trends related to cryptocurrencies
- Market Volatility: gauging the level of uncertainty in the market
Analysts Weigh In: Expecting a Significant Correction
Markus Thielen, analyst and head of research at 10x Research, has expressed concerns about the current market situation. In his report published on December 29th, Thielen stated that some analysts have been predicting a "timed parabolic move leading up to the Trump inauguration," followed by a significant correction.
Thielen, however, holds a different perspective and expects "volatility to increase soon." His warning comes as veteran trader Peter Brandt has speculated about a Hump Slump Bump Dump Pump pattern in Bitcoin’s price movement. This sequence suggests an initial rise (hump), decline (slump), recovery (bump), drop (dump), and subsequent rebound (pump).
CryptoQuant Founder Ki Young Ju Agrees with Brandt’s Analysis
In a post shared by CryptoQuant founder and CEO Ki Young Ju, the analyst agreed with Brandt’s assessment of the Hump Slump Bump Dump Pump pattern. This agreement between prominent analysts has further heightened concerns about potential volatility in the market.
Prem Reginald: Bitcoin Outperforms Traditional Assets
Despite the current slump, Prem Reginald, a CoinGecko blockchain researcher, has pointed out that Bitcoin remains the top-performing asset of the last decade, outpacing traditional assets by over 26,000%. According to Reginald’s report published on December 13th, in 2024, Bitcoin produced 129% returns, with gold following closely behind at 32.2% year-to-date (YTD) returns.
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