Bitcoin FOMO Hits Highest Level Since 2024 Amid Major Short Squeeze
Bitcoin's price surge has reached its highest level of FOMO since 2024, according to data from Santiment. This comes as the cryptocurrency climbed towards $87,000, fueled by a major short squeeze that liquidated an estimated $648 million in short positions over the past 24 hours.
The rally shows clear momentum, with overall crypto trading volume rising 39% and forcing buyers into the market. However, caution is warranted due to one-sided optimism, as open interest still rose 7.6% to around $156 billion despite the shorts being cleared out.
Historically, extreme fear often marks exhaustion lows, while widespread confidence that prices will keep rising can form near local tops. The current surge in optimism does not ensure a reversal, but the risk-reward looks less favorable than it did when fear dominated last week.
The big bull has officially entered a new bull market, with Bitcoin crossing above its 365-day moving average at $80,500 and now trading near $86,000. This crossover is a key technical signal that has marked the start of Bitcoin bull markets in previous cycles.