Crypto Market Sentiment Shifts to Fear
The crypto market sentiment has dipped into Fear, with indications that investors are momentarily pulling back from venturing further down the risk curve, as reported by sentiment sources.
According to a report from sentiment platform Santiment on Saturday, “It’s clear traders are less interested in obscure altcoins and are instead debating which major asset will break out next.”
Santiment pointed out that the crypto market is concentrating more on larger-cap assets like Bitcoin (BTC), Ether (ETH), and XRP (XRP). They stated, “A heavy focus on large-caps can indicate a more cautious or ‘risk-off’ sentiment among traders.”
This comes amidst rising calls from traders for an altcoin season. However, analysts from Bitfinex recently mentioned that this season might not arrive until more crypto ETFs potentially launch later this year.
On Sunday, the Crypto Fear & Greed Index, which assesses overall crypto market sentiment, registered a “Fear” score of 44, after showing “Neutral” readings for the previous two days.
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Some traders are also speculating about the near-term trajectory of major cap assets. On Saturday, crypto trader Daan Crypto Traders remarked that Bitcoin’s price “remains undecisive.”
Daan Crypto Trades added, “My base case scenario remains to see a sweep of the monthly lows, which should then cause some panic and fear of it losing $100K.”
Over the course of the month, Bitcoin has decreased by 5.38%, while Ether has increased by 9.44%, as per CoinMarketCap.
Nonetheless, other indicators imply that the market is still progressing toward the risk curve.
On Sunday, CoinMarketCap’s Altcoin Season Index registered an “Altcoin Season” score of 56 out of 100. This indicator fluctuates between Altcoin Season and Bitcoin Season based on the performance of the top 100 altcoins relative to Bitcoin over the last 90 days.
Crypto trader Rekt Fencer remarked, “This is the final shakeout for altcoins.”
Meanwhile, Michael van de Poppe, founder of MN Trading Capital, indicated that altcoins are “extremely undervalued.”
He commented, “The cycle has proven that this cycle is completely different than previous cycles.”
In an X post, the analyst argued, “Anyone who thinks Bitcoin has to peak in Q4 of this year does not understand statistics or probability,” suggesting that relying on the three past halving cycles lacks sufficient statistically significant data.
