The cryptocurrency market has managed to recover above $1 trillion again after the market rally caused by the Ethereum merger. This has resulted in more positive market sentiment from investors and moved the Fear & Greed Index out of extreme fear territory. Sentiment spikes like this can often bring positive news to digital assets in this space.
the index is terrified
Currently, despite the positive move in sentiment, the crypto fear and greed index continues to remain in fear territory. However, this is a welcome development from last week’s close of 22. Now with a score of 34, the index has climbed to near his one-month high, indicating a significant difference in how investors see the market compared to last week.
That said, market sentiment is still down from last month’s levels. August was a pretty good month for the market with Bitcoin reaching $25,000 and Ethereum hitting his $2,000 mark. Ultimately, the Fear & Greed Index moved to a neutral 47, its highest in four months.
However, the latest developments on Tuesday morning are likely to send market sentiment back into the realm of extreme fear.The crypto market reacted sluggishly after the CPI data of just 0.1% was released.
Market cap drops below $1 trillion | Source: Crypto Total Market Cap chart from TradingView.com
Bitcoin price plummeted from the mid $22,000s to below $22,000, losing over $1,000 in just a few minutes. The cryptocurrency market cap, which he lost over $40 billion during this time, is still over $1 trillion.
Will the crypto market recover?
The crypto market is currently suffering from the aftermath of a combination of a sharp rise and some negative news. Markets had already expected a correction, but CPI data pushed it down significantly more than expected. rice field.
However, Bitcoin continues to show support just above $20,000. Therefore, if this level persists, a sharp rally could occur, leading to another market recovery. This largely depends on the digital asset’s ability to hold on to $20,000 to $20,800, or Bitcoin’s price could fall below his $20,000. However, if it holds up, it could go above $22,000.
Bitcoin is currently trading at $20,900 at the time of this writing, down 6.08% over the past 24 hours.
Featured image from Bitcoinist, chart from TradingView.com
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Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery
Source link Investor Sentiment Sees Sharp Positive Spike Following Crypto Market Recovery