As BTC nears the end of the year, Bitcoin greed will drop to October levels
The Crypto Fear and Greed Index, an indicator that tracks market sentiment for Bitcoin and crypto, has dropped to October in the final days of 2024 Bitcoin's fall.
The index touched 65 points at its last update on December 30, still in bullish territory but the lowest since October 15.
According to CoinGecko, the price of Bitcoin (BTC) is around the $93,000 mark, down 13.7% in the last 12 days. Traders warn of a “big dump” among the flock of stablecoins.
The Crypto Fear and Greed Index has remained consistently above 70 since President-elect Donald Trump won the US election and many pro-crypto politicians won seats in the Senate and House of Representatives. It rose 94 points on November 22.
Source: Bitcoin Fear and Greed Index
The Crypto Fear and Greed Index is calculated based on signals that influence the behavior of traders and investors, such as Google trends, surveys, market momentum, market dominance, social media and market volatility.
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10x Research analyst and head of research Marcus Thielen said in a Dec. 29 report that some analysts were predicting a “overdue parabolic move leading to a Trump inauguration” that would see a significant correction.
Thielen said he has a different view and expects “volatility to increase soon.”
Veteran trader Peter Brandt speculated on X on December 28 that Bitcoin could move into a Hump Slump Bump Dump Pump pattern.
Source: Peter Brandt
The sequence indicates price movement with an initial rise (bump), then a decline (decline), subsequent recovery (bump), further drop (crash), then again (pump).
CryptoQuant founder and CEO Ki Young Joo shared Brandt's post and said he agreed with the system.
Meanwhile, CoinGecko blockchain researcher Prem Reginald, in a December 13 report, said that Bitcoin is still the top-performing asset over the past decade, outperforming traditional assets by more than 26,000%.
Bitcoin has outperformed other traditional assets over the past decade. Source: CoinGecko
According to Reginald, by 2024, Bitcoin had the best performance with 129% returns. Gold followed with a steady 32.2% year-to-date (YTD) return, while the S&P 500 had 28.3% returns.
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