Following the market crash in June, the crypto market experienced a prolonged downtrend. The total market cap fell to an all-time low of $1,050,000 due to the downtrend in both small and large cryptocurrencies. The tide is turning with this week’s new week. The cryptocurrency market cap, previously trending at $900, has now risen to $100 billion.
It’s time for crypto sentiment to turn
While the cryptocurrency market cap is below $1 trillion, its value has increased to a positive point. It is now close to recovering this critical position, with bitcoin’s price at $22,000 above. The recovery of Ethereum has also contributed to the increase in crypto market capital. Its bullish tendencies are now being reflected on smart contract platforms.
Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?| Bitcoin Marks One Month Of Negative Funding Rates, More Decline Incoming?
The sentiment among cryptocurrency investors is now shifting. One of the ways in which this has happened has been in the reading of the crypto Fear & Greed Index. To show investors’ feelings toward the market, this index uses five metrics.
Source: Crypto Total Market Cap on TradingView.com| Source: Crypto Total Market Cap on TradingView.com
For the better part of June, the index had been in the ‘Extreme Fear’ territory. As the bear market continued, investors took a step back due to losses. With a score of 6., the market finished the month with one the worst scores for the index’s interest.
Market sentiment is improving as some cryptocurrency in the market are recovering. The Fear & Greed Index presently sits at a score of 20 at the time of this writing. So although it still remains in the extreme fear territory, it is up 14 points from last month’s close.
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There is no doubt that bitcoin’s recovery above $22,000 has a lot to do with this. Market sentiment is likely to recover if the pioneer cryptocurrency continues its growth.
It is important to remember that large gains in such short periods can cause sell-offs. Mainly, investors often see such moves as a ‘bull trap’; hence they try to get out of the market before the inevitable retracement. There has been an increase in BTC flowing into centralized exchanges over the last 24 hour, with a net positive flow of 725.2 millions. Investors are selling their assets at this moment, which supports this trend.
Featured image by Kapersky. Chart on TradingView.com
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