- Bitcoin Hodlers left the cycle after they cashed huge profits.
- Is the dawn of a ‘new cycle’ near, or are we witnessing the end?
Bitcoin[BTC] November started at $ 68,000, but only two months later it rose to a new record ever of $ 109,000 – a huge increase of 60%.
With such profits it was inevitable that a profit was taken, and investors made money in December alone out A dizzying win of $ 3 billion.
Now the market is waiting for recovery. Otherwise, even holding Bitcoin on $ 100,000 could become a nightmare.
FOMO or greed: which side will dominate?
Traders become less risky at the derivatives market, where leverage is high proportion Shreds quickly. This shows that they are not sure where the price of Bitcoin will go. Fewer and fewer people get Bitcoin from the stock markets.
In fact, the currency outflow fell by no less than 16%in one day.
Source: Cryptuquant
Together these factors suggest that FOMO is fading. However, the greed has returned from ‘extreme’ levels – a bullish sign. Why? The profit possibly approaches its peak, as indicated by a Glassnode report.
According to the report, profit has fallen considerably, from 4.5 billion dollars in December to only 316 million now – a decrease of 93%. According to Ambcrypto, if Fomo returns while the excessive greed is decreasing, this can clear the way for a considerable price increase.
A look at the Bitcoin market
Bitcoin fell by 3.26%in a day, but the market does not get overheated. This means that strong purchases, probably fueled by FOMO, are needed to push the price up again.
Source: TradingView
However, the upcoming FOMC meeting could have a significant impact on the recovery of Bitcoin. Now that the meeting has only been removed for a week, the uncertainty will probably persist, making a powerful recovery in the short term less likely.
Interestingly enough, this consolidation period can be a positive sign. It could allow settings in silence accumulate Bitcoin while the market stabilizes after a period of considerable profit.
The key is what the Fed does. If they lower interest rates, things can become interesting. But if they surprise us, Bitcoin could fall further.
Read that of Bitcoin [BTC] Price forecast 2025–2026
For the time being, the market shows signs of life. The greed is back and taking a profit is cooling. This could cause a new merchant, especially as soon as the dust has descended from the Fed.
Keep an eye on the American economy calendar – It will ultimately determine whether extreme greed takes over or whether FOMO makes a comeback.
