Bitcoin (BTC) on Tuesday finally escaped its “extreme fear” territory after a whopping 73 days, coinciding with a 19% weekly increase in BTC as bulls make their way into the market.
The Crypto Fear and Greed Index rose from “extreme fear” to just “fear” on Tuesday, reaching a score of 30 out of 100. It has risen slightly since then to the index’s current score of 31.
The index analyzes the current sentiment of the cryptocurrency market in general, and it scores between 0 to 100. The index is mainly based on bitcoin market volatility, volume and dominance, social media sentiment, surveys, and research trend data.
On-chain metrics firm Santiment noted on Twitter that traders are “changing their tune” and are beginning to look for a long-term penetration of the cryptocurrency.
According to the company, the average price of BTC funding on exchanges has reached its highest levels in the past two months as the price of BTC surged above $23,600 – which could indicate a level of Fear of Loss (FOMO).
Galaxy Digital CEO Mike Novogratz continues to promote optimism about the major cryptocurrency, telling a Bloomberg conference on Tuesday that he expects Bitcoin to rise above $500,000 within the next five years:
“This is a story of two things – it is about adoption and the global economy. And while this is an obstacle to adoption, it is certainly not a turning point.”
“We continue to see institutions […] that have not yet participated, and that see this as an opportunity,” he added.
Novogratz also believes that “the worst has happened” and “we are now rebuilding for two good straight days.” He also noted that there is a “good story with Ethereum and the Merge, the global macro markets are in the extreme downturn.”
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On the other hand, the Grayscale report “Bear Markets in Perspective” indicates that the current bear market may continue for another 250 days.
Product comparison platform Finder made a similar prediction as part of its Bitcoin forecast survey on July 12, in which five Fintech specialists at Finder and 53 industry experts suggested that BTC would drop to $13,676 before making an upward trend towards $100,000 before 2025 and $300,000. by 2030.
Bitcoin was at $23,318 at the time of writing.