On November 10, the Crypto Fear & Greed Index, a barometer for sentiment in the Bitcoin and broader cryptocurrency markets, soared to its highest level in nearly seven months, hitting a rating of 78 out of 100, indicating “Extreme Greed.” This peak is the most pronounced since April 12, during which Bitcoin was priced around $70,000 and anticipation was building for the 2024 halving event.
As of October 31, the index had entered the “Extreme Greed” zone, ranging from 75 to 100, and maintained a steady score between 70 and 78 over the subsequent days. This rise in greed coincides with the election of Republican Donald Trump as President of the United States.
On November 10, Bitcoin experienced a significant rally, spiking 6.15% to set a new all-time high of $81,358. However, it has since slightly receded to $80,182 at the time of writing, according to data from CoinGecko.
By November 11, the Crypto Fear & Greed Index had slightly declined to a score of 76 out of 100, but industry analysts remain optimistic. They predict further upward momentum for Bitcoin leading up to Trump’s inauguration on January 20, 2025.
Google Trends
The recent surge in Bitcoin’s price appears to have rekindled interest among retail investors, as evidenced by a marked increase in Google search queries for “Bitcoin” over the last week. Although current search interest scores a 48 out of 100, it still lags behind the peak levels of late May 2021, when search volumes reached their zenith, as per Google Trends data.
The buoyant market sentiment has been further fueled by Trump’s electoral victory and the significant success of pro-crypto politicians in securing seats in both the US Senate and House of Representatives for the 2025-2029 term. These political shifts are expected to positively influence the cryptocurrency landscape, potentially leading to a more favorable regulatory environment under a Trump administration.
Particularly, Trump’s commitment to oust Gary Gensler as the chair of the Securities and Exchange Commission (SEC) has been met with approval from market participants who anticipate a more accommodating regulatory stance. Speculations are rife that SEC Commissioner Mark Uyeda, known for his criticism of the SEC’s current regulatory practices, might be Gensler’s successor. This potential appointment is viewed as a positive development, as Uyeda is favored by the crypto community for his more measured approach to regulation.
Political Change on Cryptocurrency
The intertwining of political events and market sentiment underscores a critical dynamic within the cryptocurrency sector. As political landscapes shift, so too does the regulatory environment, which can have profound implications for market behavior and investment strategies. The anticipation of regulatory changes under the Trump administration highlights the broader narrative of crypto’s evolving role within both economic and political spheres. This scenario reflects not just the immediate reactions within financial metrics but also the strategic adjustments by stakeholders across the industry aiming to navigate these changes.
Featured image credit: RDNE Stock project via Unsplash
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