The FOMO seems to be rising as Bitcoin (BTC) rebounds above the key 200-weekly moving average (WMA), with the U.S. equity market also recovering. Crypto market recovery comes on the back of the Fed supporting a 75 bps rate hike and waning recession fears.
Meanwhile, the U.S. stock market rallied after strong corporate earnings reports and “market bottom” sentiments. The Dow increased more than 750 points, the Nasdaq rose by 3.11%, and the S&P 500 rose by 2.76%.
Bitcoin and Stock Markets Recovery Sounds FOMO Alarm
The broader recovery in the crypto market as well as global stock markets, especially the U.S. equity market, has kicked in FOMO among investors. The word “FOMO” is trending on Google and social media platforms, making investors move money into the markets.
The crypto market is witnessing a massive recovery this week after the Federal Reserve officials turned down the possibilities of a 100 bps hike at the July-end FOMC meeting. Moreover, Ethereum developers announcing the Merge in mid-September also supported the recovery. The possibility of an economic recession is dwindling.
Bitcoin (BTC) and Ethereum (ETH) prices have skyrocketed by nearly 25% and 50%, respectively in a week. In fact, many traders and whales believe the market has bottomed. Besides, the Crypto Market Fear & Greed Index rose significantly and reached 31 for the first time since April. It indicates the interest is rising and bulls can take over.
Crypto experts such as PlanB, Rekt Capital, and Michaël van de Poppe had earlier stated that if Bitcoin holds above the 22,800 level, it will confirm a bullish rally. Bitcoin price could rally above $28,000 if the Bitcoin price closes above $22,800 at the month’s end.
The Bitcoin (BTC) price has even moved above the 200-WMA now, with the price currently trading at $23,640, up 9% in a day. Meanwhile, Ethereum’s (ETH) price has stabilized above the $1500 level, up 4% in the last 24 hours.
According to on-chain analytics platform Santiment, the FOMO is rising as Bitcoin jumps above $23.6k. Also, the ratio BTC longs and shorts ratio highest since early May.
Profit Booking May Follow
Amid the FOMO, investors have remained cautious of profit booking as whales and institutions look to book gains. According to BitInfoCharts data, a Bitcoin whale has offloaded over 60k Bitcoin in the last two days. The current balance is 71,381.79 BTC, with a profit of $132.76 million.
Moreover, Grayscale in its latest report “Bear Markets in Perspective” has revealed that the bear market could end in another 5-6 months.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.