The crypto market experienced a long downtrend after the mid-June market crash. This has caused the total market capitalization to fall to its lowest level every year due to cryptocurrencies Big and small suffered alike, however, starting to change in the new week. The crypto market cap, which was trending below $900 during the week’s better, was $100 billion.
Crypto Confidence Is Changing
Crypto market capitalization remains below $1 trillion. But it’s back in good shape. With the price of bitcoin above $22,000, it’s almost able to reclaim this important position. Another thing driving crypto market cap is the recovery of Ethereum, where the recent uptrend has interrupted other smart contract platforms in the area.
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As a result, the sentiments of crypto investors began to change. One way this happens is by reading the Crypto Fear & Greed Index. This index uses data from five metrics to present a number that shows how investors feel about the market.
Crypto market cap recovers close to $1 trillion | Source: Crypto Total Market Cap on TradingView.com
For the better part of June The index is in the ‘Extreme Fear’ territory. This is when the bear trend rages. And investors have retreated from the market due to losses. This caused the market to close for the month with the index’s attractive low score of 6.
However, because cryptocurrencies Some in the market have already recovered. So does market sentiment. The Fear and Greed Index is currently 20 points at the time of writing this article. But it is up 14 points from last month’s close.
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There is no doubt that bitcoin’s revival above $22,000 has a lot to do with this. Pioneering Cryptocurrency Market-Driven And if it continues to grow Market sentiment is expected to recover more.
However, one thing to note is that the recovery is huge in a very short period of time. Such a move could lead to a sell-off. ‘Bull Trap’; So they try to exit the market before the inevitable fallback. In the last 24 hours, there has been an increase in BTC on centralized exchanges with a positive net current of 725.2 million. This supports the fact. that investors take the time to sell their holdings
Featured image from Kapersky, chart from TradingView.com
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