Crypto Market Sentiment Returns To Pre-LUNA Crash Ranges, What Does This Imply?
The crypto market sentiment dropped drastically by 2022. Most of it was triggered by a number of companies collapsing, sending market costs right into a downward spiral. This noticed investor sentiment bouncing between concern and excessive concern for the higher a part of H2 2022. Nevertheless, there was a flip within the tide as bitcoin leads the market on one other rally. Investor sentiment has now returned to pre-LUNA crash ranges.
Crypto Investor Sentiment Makes Its Method Again Into Inexperienced
After sitting within the concern territory proper by the tip of 2022, the Concern & Greed Index has now moved into the greed territory for the primary since April 2022. Extra apparently, the index is presently sitting at ranges across the time because the LUNA crash. This was when the market was nonetheless reeling from the 2021 rally earlier than the Terra collapse triggered the dreaded crypto winter.
Now, as costs are recovering, so has investor sentiment. It’s presently sitting at a rating of 55 on the Concern & Greed Index, displaying a big enchancment over the past couple of months. What’s extra, the index reveals a gradual improve over the past week.
Sentiment returns to March 2022 ranges | Supply: different.me
It’s not struggling to interrupt out of the impartial territory, indicating that traders at the moment are comfy in accepting this as a bull rally, albeit a brief one. It additionally factors to heightened shopping for sentiment as traders rush to reap the benefits of the excessive costs and clock in some income.
The index is now at an nearly 100% improve from the place it closed out within the final month of 2022 with a rating of 28. This gives a whole 180-degree flip in how traders are viewing the market by this time.
Crypto Ending The Month Higher Than It Began
The crypto market is already in a significantly better place than it was when January 2023 first began. In lower than 30 days, the market has since added over $200 billion to its market cap, bringing it again to ranges not seen since earlier than the FTX collapse.
This much-needed restoration is a step in the precise course and it’s herding January towards some extent the place it completed the month higher than it began it. And because the shopping for sentiment round main cryptocurrencies comparable to Bitcoin and Ethereum have ballooned, the market should still have extra development to come back.
The crypto complete market cap is now sitting slightly below the $1 trillion level however nonetheless reveals potential for extra upside. Because the Fed is predicted to not hike rates of interest any additional, it turns into a chief development surroundings for danger property comparable to cryptocurrencies.
Whole market cap provides over $200 billion in January | Supply: Crypto Whole Market Cap on TradingView.com
Comply with Greatest Owie on Twitter for market insights, updates, and the occasional humorous tweet… Featured picture from Masterworks, chart from TradingView.com