Crypto investor sentiment has been in the same place for over a month as investors have been hard-pressed to make a decision. This comes amid heightened regulatory headwinds with the United States Securities & Exchange Commission suing the likes of Binance and Coinbase. But could a change be coming soon?
Crypto Fear & Greed Index Remains Neutral
Following the market surge of Q1 2023 where Bitcoin was able to reclaim the $30,000 level, the market has been in a somewhat downward spiral since then. This has cumulated in investors being unwilling to place bets on whether the market will move up or down, bringing the Crypto Fear & Greed Index to one of its longest stretches in neutral territory.
Presently, the index is sitting at a complete dead center of 50 on the scale which ranks sentiment from 1-100. 1-25 marks the extreme fear territory, 26-46 marks the fear level, 54-75 means greed and 76-100 is extreme greed. The 47-53 range is reserved for the neutral territory.
At this point, the index points to a lack of activity from investors. This is understandable given that investors are currently waiting for more clarity from regulators to determine if investing in the digital assets right now is a good idea or not.
Fear & Greed Index spends over one month in neutral | Source: alternative.me
The index has now spent the better part of the last month in this neutral territory as the tug-of-war between the bulls and the bears come to a standstill. So there is no significant movement expected in either direction while it remains this way.
Can The Weekend Shift Market Sentiment?
The weekend has historically been a period of time characterized by low volatility due to reduced market participation from investors as they take a break from the markets. However, there have also been times when the weekend has come with the most bullish or bearish movements for the market.
Total market cap sitting at $1.074 trillion as investors capitulate | Source: Crypto Total Market Cap on TradingView.com
As the market heads into another weekend, the possibility of a shift occurring during this time, although not very high, remains present. This is because, with low momentum, it is easier for the markets to swing one way or another with less volume than required on a weekday.
Given this, there could be a rapid surge if bulls are able to beat the $27,000 level for Bitcoin in the next couple of days. But bears are awarded just as much opportunity during this time, especially if Bitcoin fails to hold the $26,000 support.
Nevertheless, a swift movement in either direction could shake investors out of their current wary state to jump back into the market once more.