It always happens the same way. When the price of something drops, a buying frenzy ensues. The same thing happened with Bitcoin. When BTC fell below $67,000, buyers stepped in. The mass buying interest saw its second-largest increase in the last two months. So, where did this second wave of buying interest come from? Is it the fear of missing out on an opportunity? Or is it a bargain hunt? The answer is not easy, but factors influenced by economic trends seem to have come into play.
Santiment Highlights Greed
Without this sense of greed, perhaps life wouldn’t have much value. Trading wouldn’t be easy then. That’s why people get ambitious when prices drop. Then the rush begins. Santiment pointed to this rush today. Santiment says, Bitcoin fell to $67,000, and they rushed to bags full of BTC driven by greed.
Of course, there is no actual bag, but the increase is definite. According to Santiment, two main conditions caused greed to rise in the market. In the first condition, investors acted enthusiastically when the Bitcoin price increased. They must have hoped the price would rise even more. This scenario happened recently, on May 20. Do you remember what level Bitcoin was at then? It had surpassed $71,000.
Sure, there is definitely a FOMO here, but there are also macroeconomic factors. What are we going to do about them? We can’t separate them from Bitcoin and cryptocurrencies. Here’s a fact for you: when interest rates rise, stocks and Bitcoin are negatively affected. Money no longer comes to the crypto space. It goes to cash or US Treasury bonds.
Investors’ Expectations
Okay, this is the reality, but look at the investors. Expectations from the Fed have risen so much that the likelihood of monetary policy easing is very high. You might be wondering what will happen when monetary policy eases. The answer is simple: Cryptocurrencies are very likely to start a rally.
Now, let’s talk about Bitcoin’s price. After its recent rise, that is, after its historic peak, BTC hasn’t been very cheerful. For it to be cheerful, it will need to start its journey to $80,000. As of writing, the situation is again disappointing. BTC is again below $70,000 levels. It is trading at $67,165. For now, there is nothing to do. Continue with the wait-and-see policy.
