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Tag: Crypto fear & greed index

  • Crypto Weekly Overview: News Stories and Market Sentiment

    Crypto Weekly Overview: News Stories and Market Sentiment

    The crypto market has been showing all the signs of the raging bull finally awakening from its deep slumber. Yesterday, Bitcoin reached its highest level of the last 5 months, surpassing $21,400. Ethereum too has made it big, after it had finally made it to $1,600. It appears that the strengths of the crypto industry have dominated perceptions, and investors are eager to turn to digital assets as a store of value amid the anticipated recession of the following months.

    Highlights of the week

    • Amid the growing calls for regulating the cryptocurrency industry, Japan has recently called for the world to place strict controls and governance mechanisms on the crypto-realm, similar to that imposed on the banking industry. Top financial officials in the country have been increasingly stating that the FTX fiasco occurred due to loose regulations and weak internal controls.
    • South Korean regulating bodies have reportedly been working on the development of cutting-edge crypto monitoring tools. These assess risk levels and volatility, and could potentially play a major role in ensuring the financial stability of economies where cryptocurrency plays a major role.
    • Thailand’s Security and Exchanges Commission has brought in a new set of regulations, specifically aimed at companies that offer cryptocurrency custodial services. Each of these entities would now require sound digital wallet management systems that ensure security and efficient custody. The move is clearly one that denotes crypto mainstream acceptance, even across Eastern economies such as Thailand.
    • Ethereum’s recent rise to $1,600 has been celebrated across the market, however, the crypto asset has simultaneously been hit with a gas fee spike, during these last two weeks alone. On new year’s day, the cost stood at $2.93 per transfer, whereas presently it hovers above $4.52. This surge depicts an end to the low gas fee phase of ETH, which had been in play for several months during the bearish mode of the market.
    • In a recent update to the widely followed bankruptcy case surrounding the disgraced FTX exchange, $5.5 billion have come under discovery by the new CEO of the company, in the form of liquid assets. These are going to be committed to maximizing the recovery of the affected parties, while the sale of subsidiaries is also placed under consideration.

    Crypto fear & greed index

    Market sentiment surrounding cryptocurrencies is currently going through an epic recovery that was not present throughout most of 2022. Yesterday, for the first time since April, the crypto fear & greed index showed a result of 52, well within the greed rather than the fear zone, denoting the strong boost in market perception. Today, the index is down to 45, but still stands remarkably higher than any point it has been in, since the last 10 months.

    This sudden shift in market sentiment bodes extremely well for the future of crypto in the coming months and is evident through the remarkable recovery of Bitcoin and Ethereum prices. The timing of this market boost, as all macroeconomic indicators point to the coming of a recession could see investors flock to take refuge in virtual currencies, amid the growing weakness of fiat money.

  • Crypto-Market: Weekly Overview & Sentiment

    Crypto-Market: Weekly Overview & Sentiment

    After several weeks of stability finally attained in the cryptocurrency market, the illusion of resilience has been shattered. With, BTC and ETH both experiencing a hard plummet overnight to 2020 levels, the wider market is in utter chaos with little clarity as to how far this descent will take the crypto-market. The trigger to initiate this panic seemingly links to the highly anticipated Binance-FTX deal, which turned sour earlier this week.

    Highlights of the week

    • The FTX acquisition move by Binance, which many anticipated to be a game-changing consolidation in the crypto-market ended up a flop when Binance decided to kill the deal. The management cited financial vulnerabilities, a looming bankruptcy, as well as ongoing investigations by federal agencies, after due diligence.
    • In the panic that followed the FTX-Binance deal collapse, the prices of the top crypto names are in their worst free-fall seen in years. Bitcoin fell below $16,000, whereas Ethereum made it to a low below the $1,100 mark. The market experienced these prices back in 2020, and the market is eagerly attempting to make an upward climb back, in these conditions.
    • The EU is on track to follow through with digital currency issuances seen in some of the top emerging economies in the prior months, including both China and India. The European Central Bank president, Christine Lagarde stated that a legislative proposal will move ahead in the coming months, to create a functioning framework for a digital Euro.
    • With the US mid-term elections finally at a close, a report shows that the cryptocurrency industry had spent millions of dollars on lobbying industry-friendly political candidates. As the issue of tighter crypto regulations continues to be a hot topic in Congress, many are seeking to create room for legislative leeway. These lobby groups have been promoting an environment that could see a crypto-activity surge in a sustainable manner.
    • Despite all of Elon Musk’s controversies since taking over Twitter, Dogecoin, which is increasingly assuming the role of a proxy for sentiment around the billionaire, continues to take on a soaring climb. One reason behind this market hype links to anticipations of dogecoin integration into the Twitter ecosystem, after several hints by Elon Musk himself.

    Crypto fear & greed index

    Following its improvement in the prior weeks, sentiment surrounding the wider crypto-sphere has also seen an excruciating plummet. The crypto fear & greed index slipped from 30 to 22, in a single day, indicating a downgrade from ‘fear’ back to ‘extreme fear’ once again. The reversal in market perception comes as Binance pulled out of its FTX acquisition deal, sending shockwaves across the market.

    Bitcoin, Ethereum, and some of the top stablecoins dropped to multi-year lows overnight, which seemingly compounded the market fear in a domino effect. Traders were already on edge with regard to the market, following recent interest rate hikes. Recent developments, however, have caused serious concern about the safety and sustainability of crypto exchanges, along with the market in general.

  • Crypto News and Market Sentiment

    Crypto News and Market Sentiment

    The much-awaited interest rate hike by the US Federal Reserve had finally come to pass, with interest rates being raised by 75 basis points earlier yesterday. Much to the delight of crypto traders, the reaction in the cryptocurrency market had largely been positive, with both Bitcoin and Ethereum seeing price climbs. Digital assets are increasingly gaining notoriety in these inflationary conditions as being safe-haven assets, which may explain the growing demand. Market participants also expect the Fed to now move towards reversing gear on its aggressive stance.

    Highlights of the week

    • Singapore’s central monetary authority, yesterday, reiterated its instructions to crypto exchanges operating within the country to comply with sanctions leveled against the Russian Federation, and by extension, users that are based there. The call comes after the recent publishing of a report which has indicated that Russian citizens have raised millions of dollars through crypto-related transactions, which are being redirected to support the invasion of Ukraine.
    • In a groundbreaking development, the border-to-border payment and funds transfer giant, MoneyGram has finally launched crypto-transactions on its platform. It now allows users to buy, sell and simply hold Bitcoin, Ethereum, or Litecoin. At present this facility has only seen enabling in the United States, with expansion expected to gradually take place.
    • After successful results seen by central-bank-endorsed digital currencies across Asia, the Indian Central Bank too initiated its Digital Rupee pilot project, earlier this week. Nine national banks are collaborating on this project. In this initial phase, digital currency is seeing use in select locations, for retail purposes.
    • One of South Africa’s largest retail store chains, Pick n Pay has announced plans of accepting BTC as valid currency in all its locations across the nation. It further stated that customers may use any bitcoin transfer app, and scan with a QR code for high-speed payments. This comes as a major development for crypto-acceptance in the country.
    • The financial world’s titan, JP Morgan, for the first time ever, executed an international transaction by means of a DeFi tool, on a public blockchain. Singapore’s central monetary authority was a party to this transaction, which saw initiation with the intention of investigating blockchain applications for conventional financial markets.

    Crypto fear & greed index

    After its improvement, last week, from the ‘extreme fear’ to the ‘fear’ zone, the cryptocurrency market sentiment has impressively maintained its positioning. Following its step up, from the 25th of October, the index has on average stuck close to the 30 mark on the index, as it stands today. What is most positive about the sentiment today is that the market has maintained its perception of crypto assets, even after the US Federal Reserve hiked interest rates by 75 basis points.

    There was anticipation among many bears in the market of a potential collapse in prices after such a substantial move by the Fed, which has evidently subsided. Bulls in the market now have the go-ahead to continue upping their long positions in the market. Those who were on the fence, are likely to tilt toward crypto, now that market sentiment appears unchanged in the face of macroeconomic disruptions.

  • Crypto-Market Overview and Sentiment

    Crypto-Market Overview and Sentiment

    Following weeks of struggle, and a perception that the bears are on the verge of taking over, the cryptocurrency market is finally on its way to taking a bullish turn. This shift in trend can be most apparently observed in BTC prices which are at a six-week high, and finally above its narrow range of the prior month, pushing towards $21,000. Analysts suggest that the break has finally managed to come after a consistent weakening of the US dollar, which has increased BTC’s gold correlation by a significant margin. This increased safe-haven status that the cryptocurrency is enjoying definitely plays into this upward market surge.

    Highlights of the week

    • Both Etherium and Bitcoin prices have been trading at six-week highs, after months of uncertainty and an inability to rise beyond resistance points. Analysts state this trend in the wider market is borne directly from the weakening of global currencies and consistently falling confidence among US consumers.
    • Following the wide successes in launching a central bank digital currency in China and Hong Kong, the US Federal Reserve Governor, Christopher Waller, finally broke his silence on the phenomenon. He displayed serious pessimism about the concept, saying it offers little practical benefit and is essentially a checking account at the central bank.
    • The Public Opinion University Institute, earlier this week, published poll findings from El Salvador which showcase widespread unpopularity of the idea of BTC being legal national tender. The country’s highly popular president, Nayib Bukele is a vocal supporter of cryptocurrencies and a believer in its prospects. He had been profusely campaigning for wider crypto-asset acceptance, amid negative perception amongst El Salvadorians.
    • In the most recent App Store policy guidelines, Apple is seemingly taking a hard stance on digital assets, by only permitting approved exchanges on its platform. Considering that Apple is solely encouraging in-app purchase currencies, critics point out that the tech giant is attempting to restrict money flow to its own ecosystem.
    • In a potentially major milestone for crypto-acceptance, money transfer giants PayPal and Western Union have filed for trademarks covering wide cryptocurrency-related services. These filings point to the inevitability of crypto-assets entering the mainstream, with these giant financial services companies rushing to capture the growing opportunity presented.

    Crypto fear & greed index

    After a month and a half of lingering in the extreme fear zone, crypto-market sentiment has finally taken off in recent days, showing a significant improvement. The index, which hovered around the extreme fear zone of 20, since mid-September now stands at 32, indicating a sudden, market-wide shift in attitudes and perceptions about the future. Market sentiment, on the basis of these figures, saw an upgrade from ‘extreme fear’ to ‘fear’, coming as much-needed progress, and a step in the right direction.

    As shown above, this sentimental improvement stems from failing confidence in global currencies, specifically the US dollar that is backing them. The result is cryptocurrencies increasingly becoming safe-haven assets to turn to during these wider uncertainties. As these trends are likely to continue, market sentiment is expected to arrive at a stable equilibrium point between greed and fear, within the foreseeable future.

  • Crypto-Verse Developments & Market Sentiment

    Crypto-Verse Developments & Market Sentiment

    The cryptocurrency market has been under close watch throughout the prior week with traders and investors attempting to determine whether or not the present conditions warrant an entry or exit point. The top crypto-names, Bitcoin and Ether have been showing resilience in these bearish conditions, holding ground but also proving unable to rise above their 20-day averages. BTC is trading at the same price it did a month ago, whereas ETH has dropped by a fractional 2% in the last 30 days. In this Stocks Telegraph briefer, we cover news developments and market sentiment during the prior week.

    Highlights of the week

    A major player in the French banking landscape, Societe Generale-Forge has recently acquired the licensing and go-ahead to commence operations in the country as a ‘digital asset service provider’. The entity is a subsidiary of Societe General Group, one of the largest banks in France, and could play a major role in the French and wider European cryptocurrency and blockchain market.

    One of the top names among Indian e-commerce players, Flipkart, recently announced that it has its visions set in the metaverse and is ready to launch an initiative focused on this web3 domain. The Walmart-backed company recently launched a pilot operation along with several brands that seek to incorporate loyalty points and gamification into the virtual shopping experience.

    Participants of a top Chinese economic think tank recently proposed the idea of a blockchain-based Asian currency that could ensure the region’s reliance on the American dollar is cut down substantially. These comments come against the background of China’s highly successful Digital Yuan pilot initiative, which has recently been expanded significantly.

    As the EU faces the pressure of limited energy supplies and an uncomfortable reliance on Russia, lawmakers are turning to target cryptocurrency mining in their latest attempt to implement an energy efficiency program. The energy cost of crypto-mining had been a point of contention previously, but this is the first time it has seen clamping down against in the EU zones.

    Amid BTC volatility and the present bearish conditions, traders anxiously await the ‘Uptober’ spell to realize before the end of the month of October. This optimistic anticipation is based on historical trends suggesting the crypto-king has seen a price surge in ten of the last thirteen October.

    Crypto fear & greed index

    The bearish sentiment surrounding the market appears to have lingered for a time period that hardly seems normal for a dry spell. The market continues its extreme fear positioning, with the crypto fear & greed index figure at 24. There has been a marginal improvement over the prior days, as sentiment has somewhat bettered from its low of 20. Despite this, however, the market is seemingly struggling to push itself out of this sentimental state, considering its fluctuation within the 20 zones for the last 40 days.

    A stretch this long suggests that the market is recalibrating its base sentiment towards the high-risk domain of cryptocurrencies, in the wake of the present macroeconomic conditions. Other analysts argue that this extreme fear sentiment does not stand justified in the resilience seen with BTC and ETH, signaling a strong buying opportunity.