The original cryptocurrency, Bitcoin’s ongoing rally had induced positive sentiment in the digital assets market. As BTC regained a $48,000 price level, the Fear and Greed index flashed “GREED” with 68 points. This suggests that the market has now entered the greed zone where investors can see high rallies ahead. However, top crypto experts pointed out that the market would witness a FOMO rally.
Bitcoin rally lights Greed in the market
According to a report, analysts at Bernstein urged that Bitcoin is on the verge of a FOMO (Fear of Missing Out) rally. This rally would take BTC to a new record high. Experts mentioned that Bitcoin’s best days are yet to come in light of the growing influence of spot Bitcoin ETFs in the market.
It added that Grayscale Bitcoin Trust (GTBC) is recording a substantial reduction in outflows from the. The outflows now hovering around $50 million, while new ETFs attracted nearly $1 billion in the last two trading days. This sudden shift has improved market sentiment pushing major altcoins to surge. The analysts argue that the market has not fully priced in the inflows into funds and the emerging scarcity of supply.
Bitcoin recently breached the $48,000 mark by jumping over 13% over the past week. Now, BTC is approaching the crucial $50,000 resistance level. Exerts highlighted that BTC recorded a trend setting performance in 2023 and resilience in 2024 but still, its current level of interest doesn’t match the peaks witnessed in the years 2017 and 2021.
What’s behind this surge?
The analysts suggest that the influx of money is still coming from believers who have found an easy route to access Bitcoin through ETFs. The initial interest in Bitcoin appears to be coming from new investors who are eager to learn more about the crypto market.
Initially, Bernstein forecasted a Bitcoin rally following its halving event. However, given the massive success of the ETF launch and the continuous inflow into ETFs, analysts now anticipate a Bitcoin rally before the halving event.
Bitcoin price is up by 32% in the last 30 days. BTC is trading at an average price of $48,101, at the press time. Its 24 hour trading volume is up by 3% to stand at $20 billion. The slowdown in outflows from the Grayscale Bitcoin ETF is contributing to this positive sentiment.
However, the momentum from the S&P 500 briefly touching 5,000 is believed to be pushing over into the cryptocurrency market.
