Crazy how emotions change in a split second within the crypto world. Last week, Bitcoin was dangling below $60,000, and everybody was being super cautious. Now it is skyrocketing past $68,000, and suddenly everybody is all in.
Greed is inflating the market.
The Fear and Greed Index is flashing green at 71, which is pretty high. If you're a crypto "OG", you probably saw this coming. The excitement gets contagious. Nobody wants to miss out, and with BTC up 14% in a week, who can blame them?
I must say, when I see numbers like those, I am very tempted too.
It's the excitement of it all, the hope of it going back up again. It's real hard to resist. But I think back to the last time this index was this high. It was back in July, and what happened? Bitcoin fell. Fast. This is another classic cycle, in my opinion: prices soar, everybody jumps in, then, like clockwork, a correction follows. If you don't get your emotions in check, you'd get caught up in the hype, hoping for the moon, only to come crashing down days later.
But it's possible to turn good too.
I mean, yes, BTC can dip once more, but the demand is still strong. People are long, betting on the second leg of the bull cycle, and maybe they're right, maybe we are due for another big rally.