News/Cointelegraph/Despite Bitcoin’s price consistently staying above the $90K mark, the ‘greed’ sentiment is witnessing a gradual decline. Why is this happening?
Key Insights:
On April 23, the Crypto Fear & Greed Index recorded a significant two-month high reaching the “Greed” zone. Despite Bitcoin’s persistent price hold, the sentiment score is slowly decreasing, leading to a growing skepticism among analysts regarding the rally’s longevity.
The crypto market continues to be dominated by Bitcoin, with its dominance over 64%. Additionally, strong ETF inflows and a low altcoin season score are recorded.
Bitcoin’s several-day spike above $90,000 led the crypto market sentiment to its highest point in more than two months on April 23. However, this trend seems to be gradually tapering off as analysts voice concerns about the sustainability of Bitcoin’s rally.
Despite Bitcoin’s trading range between $91,800 and $94,304 over the last two days, the sentiment within the “Greed” zone has been gradually fading, with the index dropping to 60 on April 25.
The slight decline follows cautionary advice from several crypto analysts, including Markus Thielen, Head of Research at 10x Research, who remains conservative about the Bitcoin rally.
However, others express a more bullish outlook. Michaël van de Poppe, founder of MN Trading Capital, suggested on April 24 that “buyers are likely going to step in, and then we’ll be continuing our path toward a new [all-time high].”
According to CoinMarketCap’s altcoin season index, the market is still heavily leaning towards Bitcoin over altcoins. Bitcoin’s dominance is recorded at 64.39% as per TradingView data.
Bitcoin sentiment has accelerated since it hit the mid-$80,000 price bracket. Crypto analytics firm, Santiment, noted that the tone of Bitcoin-related social media posts has turned bullish.
Meanwhile, an April 25 post by crypto analyst Trader T highlighted that US-based spot Bitcoin ETFs have seen their third-best week of inflows since their launch in January 2024. In the past four trading days, spot Bitcoin ETFs have recorded $2.6 billion in net inflows.
Note: This article does not provide investment advice or recommendations. Every investment and trading move entails risk, and readers should conduct their own research when making a decision.
