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Bitcoin Greed Eases as BTC Price Declines Towards Year-End

Bitcoin Greed Eases as BTC Price Declines Towards Year-End

UnlockMedia2024/12/30 15:44
By: News DeskNews Desk
BTC+0.22%

The Crypto Fear Greed Index, a tool that measures market sentiment toward Bitcoin and cryptocurrencies, has fallen back to October levels following a downturn in Bitcoin prices in the final days of 2024.

The index registered a score of 65 in its most recent update on December 30, remaining in the greed zone but marking the lowest level since October 15.

As reported by CoinGecko, Bitcoin’s price is hovering around $93,000, a 13.7% drop over the past 12 days. Traders are cautioning about a potential “huge dump” as many investors shift to stablecoins.

Throughout November and December, the Crypto Fear Greed Index remained above 70, spiking to 94 on November 22, following the U.S. election victory of President-elect Donald Trump and the success of pro-crypto candidates in the Senate and House of Representatives.

The Crypto Fear Greed Index is derived from factors that influence the behavior of traders and investors, including Google Trends, surveys, market momentum, dominance, social media activity, and volatility.

In a December 29 report, Markus Thielen, an analyst and head of research at 10x Research, noted that some analysts have forecasted a “parabolic move” leading up to the Trump inauguration, followed by a major correction. However, Thielen shared his differing outlook, predicting that “volatility will increase soon.”

Veteran trader Peter Brandt, in a December 28 post on X, speculated that Bitcoin might follow a “Hump Slump Bump Dump Pump” pattern. This pattern implies an initial price increase (hump), followed by a decline (slump), a recovery (bump), another drop (dump), and finally a rebound (pump).

CryptoQuant’s founder and CEO, Ki Young Ju, endorsed Brandt’s analysis by sharing the post and agreeing with the proposed pattern.

In other news, Prem Reginald, a blockchain researcher at CoinGecko, reported on December 13 that Bitcoin remains the top-performing asset of the past decade, surpassing traditional assets by over 26,000%. In 2024, Bitcoin achieved the highest returns, with 129%, while gold followed with 32.2% year-to-date returns, and the SP 500 posted 28.3% returns.

Source
Cointelegraph
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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