CBreaksATH
FOMO and Greed Dominate Crypto Market as Trump Returns to White House
Donald Trump was inaugurated as US President for the second time yesterday, and this had an immediate impact on the cryptocurrency market.
Before the inauguration, Bitcoin reached its highest levels in history, driven by expectations of more supportive policies for technology and innovation.
Rapid correction after the peak:
Bitcoin reached $109,300, affected by the rise in momentum surrounding crypto on social media, with many analysts expecting Bitcoin to reach higher levels.
According to Santiment’s analysis, this excessive optimism is often reflected and called contrarian indicators, as historically, excessively optimistic expectations are associated with sharp corrective movements in prices due to whale selling.
Santiment explained that the trends indicate the dominance of greed and fear of missing out (FOMO), making the market vulnerable to a short-term correction.
The platform advised traders to be cautious and take an approach contrary to most prevailing expectations.
Lack of statements supporting Bitcoin:
Despite expectations that Trump would talk about cryptocurrencies or a strategic reserve of Bitcoin during his speech, no mention of these topics was made, which led to Bitcoin falling to the $102,000 level.Other cryptocurrencies affected
