Bitcoin’s price remains above $90K, but market sentiment declines with the Crypto Fear & Greed Index dropping from a two-month high of 72 to 60. Analysts express concerns on the sustainability of the rally despite bullish social media posts and significant inflows in spot Bitcoin ETFs. The altcoin season index remains low, illustrating Bitcoin’s dominance in the market.
Bitcoin’s been hovering over the $90K mark, but surprisingly, the market sentiment seems to be shifting towards caution. As of April 25, the Crypto Fear & Greed Index, which had hit a two-month high of 72 on April 23, has fallen to 60—still in the “Greed” territory but definitely on the decline. Analysts are scratching their heads over whether this recent rally can keep its momentum amid growing doubts.
The last time sentiment reached such levels was back on February 4, shortly before Bitcoin took a dive beneath $100K. This latest surge, which brought Bitcoin back to above $90,000 for the first time since March 6, has forged a strong grasp on the market. Yet, despite trading between roughly $91,800 and $94,304 recently, the optimism seems to be fading as observed by the tapering index scores after April 23.
Several analysts are sharing their concerns about the longevity of this Bitcoin rally. Markus Thielen, head of research at 10x Research, remarked, “Given that our stablecoin minting indicator has yet to return to high-activity levels, we remain cautious about the sustainability of the current Bitcoin rally.” Elsewhere on April 24, Bitfinex analysts echoed similar sentiments, highlighting that while Bitcoin’s strengths against US equities seem solid, they haven’t been categorically confirmed yet.
On the flip side, there are those with a more optimistic outlook. Michaël van de Poppe, a founder at MN Trading Capital, suggested buyers are poised to step in. He predicts that this could lead Bitcoin on a trajectory towards setting new all-time highs. Such varied opinions show the unpredictable landscape of cryptocurrency trading.
Moreover, CoinMarketCap’s altcoin season index reflects Bitcoin’s dominance as it scores a low 17 out of 100, solidifying its stronghold over the cryptocurrency market which currently boasts a Bitcoin dominance of 64.39%. Sentiment has notably improved since Bitcoin bounced back from mid-$80,000 levels. Santiment, a crypto analytics firm, noted a shift in the tone of Bitcoin-related posts on social media channels to a decidedly bullish outlook.
Finally, data also shows spot Bitcoin ETFs are experiencing significant inflows, marking the third-best week since their launch in January 2024, amounting to a whopping $2.6 billion net. Despite the murmurs of uncertainty, the investing landscape continues to show signs of activity and interest.
In conclusion, with Bitcoin holding steady above that $90K threshold, the question remains: will the positive market sentiment return or slip further into uncertainty? “This article isn’t financial advice; do your own research before investing.”
