For the past few days, the fear and greed index of the crypto markets has stabilized above 20.
This index measures the level of fear or greed in the crypto markets from 0 to 100, and in May it had plummeted to levels not seen in many months, around 10.
However, since June 10, it has been back above 20, and has been above that level for a week now. In short, fear still prevails, but it is probably no longer panic.
According to Bitpanda’s Chief Product Officer, Lukas Enzersdorfer-Konrad, this means that sentiment is starting to stabilize, not least because bitcoin and altcoin price charts seem to be turning bullish, after almost a month of stagnation, especially with some good news coming out this week that could bring optimism back to the crypto markets.
However, no clear trend has emerged yet, so it is difficult to see how best to move, despite the fact that the June market may have found support.
On Monday, exchanges saw net outflows of 22,550 BTC, the largest daily volume outflow in seven months, and these outflows generally indicate that traders may have moved their coins into wallets for long-term storage because they are not willing to trade them in the short term. This type of news is usually considered a bullish signal.
Crypto Market, fear does not hold back altcoins
Bitcoin is still dominating the crypto market, with its dominance rising to 45%, up from 39% in mid-May, which was the lowest in 2021. With the rise in dominance, altcoins are starting to fall slightly behind BTC, although the altcoin index at 82% indicates that the altseason is still ongoing.
Over the past 30 days, however, altcoins have been decidedly volatile, with investors shifting their capital from small caps to big caps.
This includes Ethereum (ETH), which will see its 2021 biggest options expiry on 25 June, as more than €1.2 billion of options will be settled. This is 30% higher than in March, when the price of ETH dropped 17% in 5 days. However, after that drop, the price of ETH then rose by 56% to new all-time highs. Enzersdorfer-Konrad points out that large option expirations usually create volatility and ought to be taken into account.
Among the best-performing altcoins lately has certainly been Chiliz (CHZ), whose price has taken off in recent days, with +43% in the last 7 days, but still far from the all-time highs of 13 March.
AMP is doing even better, with +178% in the last 14 days, which took it to a new all-time high yesterday, at a time when other cryptocurrencies are experiencing weakness.
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