Matrixport, a known provider of crypto services, sees a likely surge for Bitcoin (BTC) according to its proprietary Bitcoin Greed and Fear Index. This widely recognised index measures investor sentiment, reading above 90% as an indicator of excess optimism and below 10% a sign of extreme pessimism. Such indices are more or less considered crucial in the crypto world as they often predict market dynamics using the mood of the investors.
Interestingly, the latest data from Matrixport’s index show a rise from 30% to 60% following a July slump from over 90%. Markus Thielen, the head of research and strategy at Matrixport, suggests, “Index appears to have bottomed out as the daily signal (grey) is projecting upside pressure. After four weeks of consolidation, this indicator is tactically bullish, and Bitcoin prices could resume the uptrend.”
Empirical evidence from Matrixport’s Bitcoin Greed & Fear Index shows a notable correlation between the index tops and bottoms and the bull or bear shifts in Bitcoin’s price. Mapping such data points, the 21-day simple moving average (SMA) has started to show patterns suggesting the likely rise of Bitcoin’s market volatility.
However, Bitcoin’s market performance has recently been somewhat sluggish, trading between $28,000 and $30,000 for more than two weeks. Traditional market volatility and speculations around Fed rate cuts early next year are seen as primary reasons for this inertia.
In the spotlight, in this scenario, is the SEC’s soon-to-be-announced decision about spot exchange-traded fund (ETF) filings, which some analysts believe could significantly impact Bitcoin’s price fluctuation. With a deadline of August 13 looming for the SEC to approve or reject Ark Invest’s spot Bitcoin ETF application, the crypto community is eagerly awaiting the regulator’s determinations.
There is an air of anticipation among stakeholders for a decision that could come as early as Friday, given that the official deadline lands on a Sunday. Nevertheless, while bullish indicators are observed on Matrixport’s index, the crypto market awaits a decision that could potentially steer the course of Bitcoin’s future. Thus, while Bitcoin’s future seems to hold promise, the industry’s inherent unpredictability continues to instil a level of uncertainty.
Source: Coindesk
