Bitcoin Surges Past $87K as FOMO Hits Highest Level Since 2024
Bitcoin's FOMO (fear of missing out) has reached its highest level since 2024, according to data from on-chain analytics platform Santiment. This surge in optimism 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's momentum is evident in the increased trading volume, which rose 39% over the same period. However, the one-sided optimism warrants caution as open interest still rose 7.6% to around $156 billion, indicating traders are adding new leverage rather than stepping back.
Historically, extreme fear often marks exhaustion lows, while widespread confidence that prices will keep rising can form near local tops. This 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 after crossing above its 365-day moving average, which has a strong track record as a cycle-defining level. The asset initially traded at $80,500 but now trades near $86,000, reclaiming the 365-day MA for the first time since March 2023.