Is the Crypto Fear and Greed Index asking you to HODL? – Assessing…
- The market sentiment has been steadily bullish over the previous three weeks
- Whereas on-chain metrics confirmed new highs have been doubtless for Bitcoin, volatility is to be anticipated because it trades close to its all-time excessive
The crypto market has skilled a risky week.
It started with losses for each Bitcoin [BTC] and altcoins, however these losses have been shortly recovered on the 2nd and the third of July, extending the current rally.
For the reason that twenty third of June, Bitcoin has gained 6.31%, whereas the broader altcoin market is up 7.6%.
Nonetheless, the 4th of July noticed renewed promoting strain as short-term holders took income. Including to the uncertainty is the looming deadline for Trump-era tariffs.
Whereas the U.S. has reached commerce agreements with international locations like China and Vietnam, offers with key companions similar to Japan, South Korea, and the European Union stay unresolved.
Fears of a possible commerce battle could also be contributing to the current sell-off.
Regardless of the market jitters, investor urge for food stays sturdy. Spot Bitcoin and Ethereum [ETH] ETFs recorded sturdy inflows on the third of July.
Notably, Bitcoin noticed a $601 million influx—the most important single-day surge for the reason that twenty second of Could, when it recorded $934 million.
Crypto Concern and Greed Index reveals bullish market sentiment
On the time of writing, the Crypto Concern and Greed Index studying was a wholesome 73, signaling greed out there.
With Bitcoin simply 3.9% under its all-time excessive, loads of holders have been in revenue. This explains the short-term promote strain seen on the 4th of July.
A greed sign doesn’t essentially assure a direct bearish value reversal.
It’s value noting that the Crypto Concern and Greed Index hit 78 on the twenty third of Could. That was the identical day Bitcoin reached a excessive of $111.8K.
Notably, the index has now returned to an identical degree, at press time.
This may occasionally have prompted some holders to take income, particularly since BTC is at present buying and selling inside an outlined vary.
Supply: TOTAL2 on TradingView
Thus, altcoins have underperformed in comparison with Bitcoin, signaling potential weak point within the broader market.
This serves as a warning for altcoin buyers to arrange for elevated volatility, particularly if Bitcoin faces additional losses within the coming days.
Whereas the timing of Bitcoin’s subsequent all-time excessive stays unsure, on-chain knowledge suggests the upward transfer will not be far off.
Lengthy-term holders could profit from staying affected person and persevering with to HODL.
