Peak FOMO Hints Bitcoin Rally Halts BTC’s Rise After $64k

The past ten days or so have gone positively for Bitcoin as the asset has rallied nearly ten grand in that time frame, fueled mainly by the US Federal Reserve's decision to cut key interest rates.

However, some social metrics suggest that the cryptocurrency run may be over, at least in the short term.

FOMO To Stop BTC's Growth?

Just last Wednesday, September 11, after the release of the US CPI numbers, the price of Bitcoin fell sharply. At the time, the property was down to $55,500. However, speculation over the Fed's next move continued to mount in the days to come.

A week later, the US central bank decided to depart from its four-year monetary strategy and cut interest rates, following the example of the ECB, the Bank of Canada and the Bank of England.

After the inevitable immediate volatility for BTC and other markets, the cryptocurrency received a good response and went from $59,500 to the three-week peak of $64,000 in five days. However, the rally was temporarily halted, and the property fell below $63,000.

Data from Santiment suggests that this slowdown may be followed by a more aggressive resurgence due to social media interactions. This week FOMO (fear of missing out) levels rose to the fourth highest since the start of the year. Usually, such a rapid rise occurs after the ATH in March and is followed by corrections in early June and late July rallies.

@santimentfeed has unleashed a very bullish public mood as it transitions into weekend mode. After the Fed's first rate cut in 4.5 years, there's reason why the public continues to be bullish about Bitcoin and more… pic.twitter.com/KTosasj6tS

— Santiment (@santimentfeed) September 21, 2024

Santiment warned that the crypto market is particularly vulnerable to such reactions, and typically tends to move in the opposite direction.

Back to neutral

The fear and greed index, which measures various data such as social media interactions, price movements, surveys, etc. to gauge the current sentiment for the industry, has increased by 21 points in the past few days.

On September 17th (the day before the rate cut), it returned to ‘fear' mode (33) but reached a multi-week high of 54 (non-neutral). Note that the price of BTC dropped from $65,000 to below $52,000.