Bitcoin sentiment has whipsawed from “extreme fear” to “greed” and “FOMO” in just a matter of days, with Bitcoin gaining over 12% over the last week.
In a July 16 post to X, crypto analytics platform Santiment suggested caution amid the sudden bullish reversal, saying that investors would be wise to tread carefully when “the crowd has collectively become so bullish without many signs of fear.”
Santiment said much of the market’s newfound optimism stemmed from investors looking favorably at the likelihood of Donald Trump and his crypto-friendly running mate JD Vance clinching an election victory in November.
Meanwhile, in the three days between July 13 and July 16, the Bitcoin (BTC) sentiment tracker Crypto Fear & Greed Index has whipsawed from “extreme fear” to “greed” amid a crypto market rally.
Bitcoin has gained 12.8% in the last week and is currently changing hands for $64,508, per TradingView data.
Bitcoin ETF inflows hit $300M on Monday
Bitcoin exchange-traded funds (ETFs) have also been displaying signs of strength, with the roster of eleven spot Bitcoin funds netting a total of $300.9 million worth of net inflows on July 15.
BlackRock and Ark 21 Shares funds led the pack, with identical $117.2 million in inflows on the day, according to FarSide Investors data.
The price of Bitcoin bounced off its July 5 low of $53,500, which came during an onslaught of German government-linked BTC sales and souring sentiment stemming from fears of the roughly $8.5 billion in BTC being paid back to creditors of collapsed crypto exchange Mt. Gox.
After Bitcoin reclaimed key territory above the $62,000 mark, several analysts told Cointelegraph that an easing macro-environment might mean the worst “is likely behind us.”