Investor sentiment in the crypto market has been on the decline since the bitcoin crash in June but had begun to see some uptick once the price began to stabilize. That is until another dip sent the price of bitcoin back below $20,000 and has once more triggered fear in investors. The Fear & Greed Index which had been recording some recovery in the sentiment has seen its reading plunge deep into the red once more.
With the last week’s recovery above $22,000 had seen the Fear & Greed Index start to move out of the extreme fear territory. This was coming out of one of the worse months ever recorded in the history of the crypto market where extreme fear levels had touched as low as 9. Nonetheless, the recovery had done well to return some confidence in the market. But then Monday happened.
Related Reading | How Crypto Exchanges Are Handling The Bear Market, Bitrue CMO
When the market opened up into the new week, bitcoin had lost its footing above $22,000 already but it was still holding steady just below $21,000. It was expected that this would be where the digital asset made a stand against the bills. However, with low momentum going into the new week, it had quickly declined and that fall below $20,000 had taken the once-improving investor sentiment down with it.
As of the time of this writing, the Fear & Greed Index is sitting in extreme fear with a score of 16. It is down 6 points from the previous day’s score of 22 which had brought it close to leaving the extreme fear territory. This decline back into fear has triggered extreme wariness and drastically dropped the risk level of investors in the space.
Market in extreme fear| Source: alternative.me
It is nowhere near the lowest level that the index has been but with bitcoin and other cryptocurrencies still struggling to hold their prices, further decline is expected, leading to more negative sentiment.
The crypto market is still a favorite for a lot of investors due to the wide potential of the space. However, the crypto market cap has lost another $50 billion off of its market cap as the bear market rages on. This has sparked speculations across the space regarding recovery and if there even is a recovery in the near future.
Related Reading | Here’s The Large Public Bitcoin Miner That Has Refused To Succumb To The Bears
A look at the charts shows that this is indeed a bear market and like any bear market, even though there may be slight recoveries here and there, the majority of movement is still towards the bottom. In this vein, there is not much recovery to be expected for the bear market and the $1 trillion market cap may be further away than expected.
Market cap sheds $50 billion | Source: Crypto Total Market Cap on TradingView.com
Additionally, with sell-offs across the space, it is hard for any digital asset to maintain a hold on any important level. It remains a seller’s market and that has given the bears full control of the market. So while there may be some recovery following the dip, it is likely a sharp decline will follow.
Featured image from Psychology Today, charts from TradingView.com
Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Futu has expanded its trading services to Hong Kong and Singapore, becoming the first online brokerage in both regions to offer direct cryptocurrency trading to retail investors. This expansion enhances Futu’s competitive position and reflects a broader trend of integrating digital currencies into traditional financial platforms.
WeatherlyBlocklords, a medieval MMO Web3 strategy game, has launched its $LRDS token after six months of airdrop campaigns. Players can stake $LRDS to gain influence and participate in community voting. Craft your unique adventure and shape the game's future. What path will you choose?
CatherineTrillioner’s recent price spike to $91.34 is notable but raises concerns due to its low trading volume and unverified partnerships. The project's potential for market manipulation and questionable social media engagement suggest that its long-term stability may be uncertain.
AnaisElon Musk has sued OpenAI's co-founders, Sam Altman and Greg Brockman, for prioritising commercial interests over their mission of public good. Ironically, this comes as Musk expands his own for-profit AI startup, xAI. Is this a case of the pot calling the kettle black?
KikyoThe Australian Federal Police (AFP) has partnered with Chainalysis in a global campaign called "Operation Spincaster" to tackle cryptocurrency fraud. This operation has revealed over 2,000 compromised Australian crypto wallets and uncovered $162 million in losses.
WeatherlyDill, a modular data availability network aligned with the Danksharding roadmap, has been selected for Binance Labs Incubation Programme Season 7 and has also closed its pre-seed and founders funding round led by Find Satoshi Ventures. This highlights the growing importance of data availability infrastructure.
CatherineMorpho has raised $50 million led by Ribbit Capital to enhance its decentralized lending infrastructure. The funds will help integrate Morpho into the fintech ecosystem and expand its impact in decentralized finance (DeFi).
WeatherlyDespite its popularity and 300 million users, Hamster Kombat's airdrop is delayed with no set date, despite promises of the “largest airdrop” in crypto history. Will Telegram clicker games lose its appeal and crash post-airdrop?
KikyoChinese national Wang Xinghong, 40, was sentenced to five years in prison for his role in a cryptocurrency scam that defrauded over 700 investors out of S$6.7 million. As CTO of A&A Blockchain Innovation, he helped maintain a fake mining app, contributing to the scheme's operation and resulting in losses of S$1.1 million.
AnaisIn just over two weeks since its launch, the NOWChain Testnet has surpassed 340,000 transactions. With its Proof of Mobile (PoM) consensus, NOWChain aims to transform blockchain security by leveraging the collective power of mobile devices.
Catherine