Bitcoin greed falls to October levels as BTC fizzles toward year end

As a seasoned crypto investor with a decade-long journey through the volatile and unpredictable world of digital assets, I have learned to navigate market fluctuations with a calm and analytical mindset. The recent drop in the Crypto Fear & Greed Index to October levels, accompanied by a 13.7% decline in Bitcoin price, has not fazed me too much. I recall similar dips in the past that were swiftly followed by impressive recoveries.

The index’s prediction of increasing volatility aligns with my own expectations, as market sentiment tends to oscillate wildly before significant shifts occur. The analysis from experts like Markus Thielen and Peter Brandt, who foresee a potential Hump Slump Bump Dump Pump pattern, adds weight to the idea that we are on the cusp of another transformation in the market.

I find myself intrigued by the contrasting perspectives presented by these analysts. While some predict a correction after the Trump inauguration, others see a continuation of Bitcoin’s meteoric rise. I am reminded of a classic joke: “How do you make a small fortune in cryptocurrency?” The answer, of course, is “Start with a large one!”

Investing in crypto requires patience, resilience, and the ability to adapt to ever-changing circumstances. As we move forward into 2025, I will continue to keep a watchful eye on market developments and make informed decisions based on my experience and insights. After all, the cryptocurrency market is a rollercoaster ride that never ceases to surprise us!

In simpler terms, the Crypto Fear & Greed Index, which measures people’s feelings towards Bitcoin and other cryptocurrencies, has fallen to its lowest point since October this year, due to a recent drop in Bitcoin prices at the end of 2024.

According to its last update on December 30th, the index reached a score of 65, which remains in the “greed” zone, but this is the lowest it’s been since October 15th.

As reported by CoinGecko, currently, the Bitcoin (BTC) price hovers near $93,000. Over the past 12 days, its value has decreased by approximately 13.7%. Traders are sounding alarms about a potential significant sell-off due to increased interest in stablecoins.

During November and December, the Crypto Fear & Greed Index has consistently remained above 70, a period marked by Donald Trump’s victory in the U.S. presidential election and numerous pro-crypto politicians claiming their seats in the Senate and House of Representatives for the 2025-2029 term. The index peaked at an impressive score of 94 on November 22nd.

The Crypto Fear & Greed Index determines its value by analyzing various factors influencing the actions of traders and investors in the cryptocurrency market. These elements include search trends on Google, opinions gathered from surveys, the direction and intensity of market movements, the control different markets hold, social media chatter, and the instability within the market itself.

According to a December 29th report by Markus Thielen, who is an analyst and head of research at 10x Research, certain analysts anticipate a “time-bound parabolic surge” towards the time of Donald Trump’s inauguration. This prediction is followed by expectations of a substantial market correction afterwards.

Thielen says he has a different perspective and expects “volatility to increase soon.”

Experienced investor Peter Brandt suggested in a post on the 28th of December that Bitcoin might follow a pattern known as Hump-Slump-Bump-Dump-Pump.

The pattern implies a price trend that starts with an increase (rising graph), followed by a decrease (falling graph), then a recovery (re-ascent), another fall (downward spiral), and finally, a rise again (surge).

According to Ki Young Ju, the founder and CEO of CryptoQuant, he agrees with Brandt’s observation that Bitcoin appears to be following a Hump-Slump-Bump-Dump-Pump pattern.

Currently, Prem Reginald, who works as a blockchain analyst at CoinGecko, stated in a recent report dated December 13th, highlights that Bitcoin remains the leading asset of the past ten years. This digital currency has outperformed traditional assets by an impressive margin of more than 26,000%.

In 2024, as per Reginald’s analysis, Bitcoin emerged as the top performer, yielding a significant return of approximately 129%. Gold came in second with a more modest yet consistent year-to-date (YTD) growth of around 32.2%, and the S&P 500 recorded returns amounting to 28.3% within the same period.

2024-12-30 08:40

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