Bitcoin Market Shifts from FOMO to FUD as Bearish Outlook Takes Hold
The Bitcoin market has undergone a significant shift in sentiment over the past three weeks. Just as quickly as it reached an all-time high, investor enthusiasm turned to fear with the Fear & Greed Index plummeting from 74 to 50.
A recent report by Santiment illustrates this drastic change. In late August, Bitcoin was heading towards $80k, sparking a surge in bullish social chatter. However, after a brief period of FOMO as BTC broke above $80k on September 3rd, sentiment flipped to FUD, with discussions around lower prices reaching their highest level for the month.
The CLARITY Act's failure to advance and the Fed's rate hike have added to the bearish outlook. CryptoQuant's Bull Score has dropped from 80 to 60 in just one week, indicating a weakening bullish setup.