In a dramatic turn of events, Bitcoin sentiment has swung from “extreme fear” to “greed” and “FOMO” (Fear of Missing Out) within mere days, propelled by a significant 12% price surge over the past week.

In a July 16 post on X, the crypto analytics platform Santiment advised caution amid this abrupt bullish shift. The platform highlighted that investors should be wary when “the crowd has collectively become so bullish without many signs of fear.” Santiment attributed much of the market’s newfound optimism to favorable perceptions of Donald Trump and his crypto-friendly running mate JD Vance potentially securing an electoral victory in November.

Concurrently, the Crypto Fear & Greed Index, a sentiment tracker for Bitcoin, transitioned from “extreme fear” to “greed” between July 13 and July 16, reflecting the market rally’s impact.

Read more: Surge in Bitcoin ETF Inflows Reaches Five-Week High

Bitcoin ETF Inflows Surge Past $300 Million

On July 15, Bitcoin exchange-traded funds (ETFs) exhibited robust performance, with eleven spot Bitcoin funds collectively amassing $300.9 million in net inflows. This influx underscores growing investor confidence in Bitcoin’s long-term prospects.

Bitcoin’s price rebounded from its July 5 low of $53,500, a dip triggered by German government-linked BTC sales and negative sentiment due to concerns about the $8.5 billion in BTC repayments to creditors of the defunct crypto exchange Mt. Gox. After reclaiming crucial territory above the $62,000 mark, several analysts conveyed to Cointelegraph that an improving macroeconomic environment might indicate that the worst is behind us.

Market Analysis and Future Projections

The swift shift in sentiment from fear to greed highlights the volatile nature of the cryptocurrency market. While the recent ETF inflows and price recovery are promising, investors are advised to proceed with caution. Market optimism can quickly reverse, and prudent investment strategies should account for potential volatility.