Investor Sentiment Sees Sharp Positive Spike Following Crypto market Recovery
September 13 2022 - 1:00PM
NEWSBTC
The crypto market has been able to recover above $1 trillion once
more after the market rally that was triggered by the Ethereum
Merge. This has resulted in more positive market sentiment from
investors, causing the Fear & Greed Index to move clear of the
extreme fear territory. Such spikes in sentiment can often spell
positive news for the digital assets in the space. Index Moves Into
Fear Now, even with the positive movement in sentiment, the crypto
Fear & Greed Index continues to remain in the fear territory.
However, it is a welcome development from last week’s close of 22.
With a current score of 34, the index has risen near one-month
highs, showing a significant difference in how investors viewed the
market last week compared to this week. Related Reading: Crypto
Traders Bleed Heavily After Betting Against Market Nevertheless,
the market sentiment is still down from where it was last month.
The month of August was a rather good one for the market, where
bitcoin had reached as high as $25,000, and Ethereum had clocked
out at $2,000. In the end, the Fear & Greed Index had moved
into a neutral 47, the highest it had been in four months.
However, recent developments on Tuesday morning are likely to send
market sentiment back into the extreme fear territory. Following
the release of the CPI data, which came in at just 0.1%, the crypto
market reacted poorly. Market cap drops below $1 trillion | Source:
Crypto Total Market Cap chart from TradingView.com Bitcoin’s price
had dropped sharply from the mid-$22,000s to below $22,000, losing
more than $1,000 in a matter of minutes. The crypto market cap lost
more than $40 billion dollars in this time, although it continues
to hold above $1 trillion still. Will Crypto Market Recover? The
crypto market is currently suffering from the aftermath of a
combination of sharp increases and some negative news. A correction
was already expected from the market, but the CPI data had pushed
it farther down than expected. Related Reading: Here’s Where
Investors Expect Cardano (ADA) Price To Be At The End Of September
However, bitcoin continues to show support just above $20,000. So
if this level holds, it is likely that there will be a sharp bounce
leading to another market recovery. This is largely dependent on
the digital asset’s ability to continue to hold the
$20,000-$20,800. A failure to hold will likely see bitcoin’s price
back down below $20,000. If it holds, though, then a climb above
$22,000 is likely. Bitcoin is currently trading at $20,900 at the
time of this writing, down 6.08% in the last 24 hours. Featured
image from Bitcoinist, chart from TradingView.com Follow Best Owie
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