Bitcoin Retail FOMO absent, as Coin Reaches “Extreme Greed” Territory
Bitcoin’s price has gained by around 36% over the past two weeks. The coin has managed to hold the five-month high of $57,000, but this is yet to create an influx of retail traders who usually accumulate due to the fear of missing out (FOMO).
Google Trends Shows retail Hype is still absent
Towards the end of September, Bitcoin’s volatility was relatively high, which caused the coin to drop several times below $41,000. However, in two weeks, the primary cryptocurrency has made a 36% jump to $57,000.
Such jumps usually attract retail traders. However, this does not seem to be the case currently, as depicted by data from Google Trends. In mid-May, when Bitcoin has reached its peak of $65,000, the number of Bitcoin queries on the Google search engine was high.
Currently, these queries are relatively low, and there has been no significant difference since the beginning of October. Data from Google Trends also shows that the “buy BTC” searches have not changed in the past two weeks, signifying that the current bullish rally is not hyping retail investors.
This trend analysis supports the previous sentiment that institutional investors have caused the current bullish rally. It further signals that an even stronger bullish rally could be on the way once retail investors start buying.
Bitcoin Moves to “Greed” Territory
The Bitcoin Fear and Greed Index shows that the coin has entered the “extreme greed” territory despite retail investors staying away from the scene. This metric is arrived at following an analysis of surveys, social media sentiments and trading volumes.
The Bitcoin Fear and Greed Index tends to change with the changes in BTC’s prices. Towards the end of September, when Bitcoin dropped to below $40,000, this index went to a state of “extreme fear.”
A key factor to note with this index is that when it reads a state of extreme fear or greed, a price correction usually follows in the opposite direction. This index currently shows that the greed index has reached 78, a territory of extreme greed, which could signal a price adjustment.
Speculations that Bitcoin will also reach $100K have also been revived with the current gains made by the coin. At the beginning of October, the Bitcoin long-term holder supply shock reached record highs, which indicates that the current gains could hold, as retail traders are not on the scene to causing selling pressure that could lead to major price dips.
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