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Cryptocurrency Market Sentiment Plunges as Fear Overtakes Greed Once Again

With the index now resting at 43, a stark departure from the recent greed-dominated territory, investor anxiety is palpable. Such levels, ranging from 26 to 46, typically signify a bearish sentiment prevailing within the market.

Contributing to the apprehension is the continued exodus of capital from U.S. spot ETFs, particularly evident in the record-breaking $564 million net outflow from the spot Bitcoin ETF on May 1, the highest since its January inception.In a notable turn of events, the Crypto Fear and Greed Index has plummeted back into the realm of fear, marking its lowest point since October. This shift in sentiment comes on the heels of a sharp decline in Bitcoin prices, sparking considerable unease among cryptocurrency traders.Contributing to the apprehension is the continued exodus of capital from U.S. spot ETFs, particularly evident in the record-breaking $564 million net outflow from the spot Bitcoin ETF on May 1, the highest since its January inception.

Despite these concerning developments, analysts from Santiment maintain an optimistic outlook on BTC’s future price trajectory. They assert that the recent market correction was to be expected, given the surge in Bitcoin capitalization leading up to the halving event. It appears that investors may have succumbed to the age-old adage of “buying the rumor and selling the news.”

Delving deeper into the market dynamics, experts highlight that the surge in Bitcoin’s value witnessed in October 2023 and early spring 2024 was largely fueled by heightened expectations surrounding the halving. However, those who entered the market at the peak in late March, when prices hit their all-time high, now find themselves facing losses.

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