Bitcoin's Sentiment Shift: From FOMO to FUD in Just Weeks
Bitcoin's sentiment has undergone a significant shift in recent weeks, going from extreme greed to fear and uncertainty.
The Fear & Greed Index peaked at 74 just under three weeks ago, indicating strong investor enthusiasm as Bitcoin reclaimed $82k. However, the index has since dropped to 50, placing it squarely in the middle of FUD (fear, uncertainty, and doubt) and FOMO (fear of missing out).
A recent report by Santiment illustrates this shift visually. From August 19th to 21st, Bitcoin was headed towards $80k, triggering a surge in bullish social chatter. The FOMO peaked again on September 3rd as Bitcoin broke above $80k. However, by September 15th, sentiment had flipped to FUD.
The Senate's failure to advance the CLARITY Act and discussions around lower prices contributed to this shift. Additionally, CryptoQuant's Bull Score dropped from 80 to 60 in just one week, indicating weakening momentum and market conditions.