Cryptocurrency market escapes extreme fear... Is it a signal of psychological recovery?

Source: DigitalToday Original Title: Cryptocurrency Market Escapes Extreme Fear…Is It a Signal of Psychological Recovery? Original Link:

The cryptocurrency market is emerging from an extreme fear phase that lasted for 18 days, showing signs of stabilizing investor sentiment.

According to the blockchain media Cointelegraph, the 'Fear and Greed Index', which indicates cryptocurrency investment sentiment, recorded 28 points, rising from extreme fear to the 'fear' stage. This marks the first time since October 10th that it has escaped from the worst sentiment.

This change is interpreted as a result of the market atmosphere calming somewhat as Bitcoin approached $92,000 at one point. Cryptocurrency analyst CryptoSese stated that “the entire market was frozen to the extent that the term extreme fear is insufficient,” evaluating that the recent price rebound has revived sentiment. On the other hand, trader Nikola Duke hinted at the possibility of further rebounds, noting that “extreme fear periods have always coincided with Bitcoin's lows.” Data platform Santiment also analyzed that “Bitcoin investment sentiment has somewhat recovered, and volatility and institutional investment trends have emerged as key topics on social media.”

However, the overall market remains cautious. The Altcoin Season Index from CoinMarketCap remains at a low level of 22 points, indicating that funds are still concentrated in Bitcoin. Andrei Dragosh, Head of Research at Bitwise Europe, pointed out that “the current market is misinterpreting macroeconomic outlooks, which is similar to asymmetric risks from past periods.”

In the market, the recent recovery in sentiment is being evaluated as closer to short-term stability rather than a complete reversal. While the extreme fear phase has been overcome, key indicators are still maintaining a conservative trend, making it too early to confirm a clear trend reversal. For the time being, the market is expected to continue with a cautious atmosphere along with limited rebounds.