Bitcoin Market May ‘Cool Off’ In 4 To 6 Weeks — But Here’s What Needs To Happen
Over the years, investor sentiment has been one reliable way to analyze the Bitcoin and cryptocurrency market. Based on recent on-chain data, an analyst has pointed out how the changing investor sentiment could affect the world’s largest cryptocurrency over the next few weeks.
Can BTC Price Charge To New All-Time High?
In a recent post on X, crypto analyst Axel Adler Jr explained how the Bitcoin market dynamics could significantly shift in the coming weeks. This projection is based on recent changes in the “Bitcoin Fear and Greed Index.
The Bitcoin Fear and Greed Index refers to a metric that aggregates the average sentiment of investors in the BTC market. The indicator is divided into five zones, including extreme fear, fear, neutral, greed, and extreme greed.
Extreme fear signals that traders and investors are moving with high caution, while extreme greed suggests an overheating market condition with traders flooding in with new positions. Historically, periods of extreme fear have been correlated with market bottoms while price corrections usually occur during extreme greed.
According to Adler Jr., the 90-day simple moving average (SMA) of the Bitcoin Fear and Greed Index has fallen by approximately 22 percentage points over the past two months. This decline has seen the BTC metric shift from extreme greed to a more moderate level of greed.
Going further, the on-chain analyst mentioned that if the Bitcoin Fear and Greed Index drops by another 10 to 15 points in the near future, the market may experience a cooling-off period where participants could have become accustomed to negative factors and emotional price movements may even subside.
Adler Jr added in his post:
At the current pace, it may take approximately 4 to 6 weeks for the index to drop by an additional 10–15 points.
The analyst also highlighted that the 30-day (monthly) moving average appears to be reaching a local bottom, one seen at the end of the Bitcoin price correction to $54,000. The last time the Fear and Greed Index monthly SMA reached this level, the premier cryptocurrency climbed to a new all-time high price. If this historical pattern holds, investors could see the BTC price break out of its consolidation range.
Bitcoin Price At A Glance
As of this writing, the price of BTC is just beneath the $84,000 level, reflecting a 0.5% decline in the past 24 hours.
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Pakistan Explores Bitcoin Mining to Utilize Surplus Energy
- Pakistan’s Crypto Council proposes using surplus electricity for Bitcoin mining.
- The government plans market-based electricity tariffs for crypto miners.
Pakistan is considering Bitcoin mining as a way to use excess electricity and boost its economy. The proposal was discussed during the first meeting of the Pakistan Crypto Council (PCC) on March 21. Finance Minister Muhammad Aurangzeb chaired the meeting, attended by key financial and regulatory officials.
PCC CEO Bilal Bin Saqib highlighted the potential of surplus energy for Bitcoin mining. He stressed the need for tailored regulatory models and a clear national blockchain policy. According to Saqib, using excess power for mining could turn liabilities into assets and attract global investment.
The government is developing a framework to regulate the digital asset sector. Authorities plan to introduce market-based electricity tariffs for crypto mining and blockchain data centers. These tariffs will not rely on subsidies. The initiative aims to reduce financial losses from unused electricity.
Pakistan’s Crypto Strategy and Global Mining Trends
Pakistan is looking to become a regional crypto hub. Officials emphasize the need for a stable and scalable regulatory environment. They also aim to ensure consumer protection, licensing, and compliance with global regulations. The strategy includes pilot programs and gradual rollout phases.
The move aligns with global trends in crypto mining. Russia recently legalized the industry, leveraging its abundant energy resources. The U.S. states of Texas and Wyoming have implemented crypto-friendly regulations. Meanwhile, China banned mining in 2021 but still accounts for a significant share of global hashrate.
El Salvador has embraced Bitcoin mining using geothermal energy. However, the IMF has urged the country to halt mining operations as part of a financial agreement. Pakistan’s approach could position it as a competitive player in the crypto space.
Pakistan’s finance chief supports a future-ready financial ecosystem. Authorities are working to develop a regulatory structure that ensures transparency and attracts investment.
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