Bitcoin rallied to $86,447, gaining 6.42% in the past day and 10.42% over the last month as the asset maintained momentum above the $80,000 mark. The surge triggered $556 million in short liquidations within 24 hours.
FOMO and Market Participation Intensify
Crypto analytics platform Santiment reported that Bitcoin's fear of missing out (FOMO) has reached levels last observed in December 2024, when Bitcoin reached $108,000. Combined trading volume spiked 39%, while open interest rose 9.38% in 24 hours to $61.33 billion.
Institutional participation also picked up, with corporate purchases adding to buying pressure. Bitcoin spot exchange-traded fund net flows turned positive at $317.10 million as of September 21.
Market Sentiment Shifts
Falling bond yields and other market factors contributed to a shift toward cautious optimism. Analyst Ben Cowen reversed his bearish stance on the asset, while investor sentiment broadly tilted bullish. However, some positions moved contrarian; investor Garret Jin closed an $8.38 million profit on a Bitcoin long and opened a short position of 500 BTC on 3x leverage valued at $43.23 million.
Santiment cautioned that one-sided optimism warrants vigilance, noting that as risk lowers, so do potential rewards.
Technical Outlook
If Bitcoin sustains its position above $86,000, a move toward the $90,000 Fibonacci extension is possible. A break below this level could trigger a pullback toward $82,000 to $84,000.
