Anticipated volatility lands, but crypto markets remain in 'Greed'

CRYPTO markets are seeing some sharp pullbacks this morning, cooling off after last week’s rapid price gains.

Analysts have warned of potential turbulence after the Fear and Greed Index flirted with 'Extreme Greed', signalling overbought conditions across much of the crypto landscape.

Bitcoin, however, remains relatively resilient, trading just above $87,500, down only 2% over 24 hours.

Ethereum has dipped 6% overnight, while the deeper declines are in altcoins, with The Graph and Cardano among those facing double-digit drops.

While these corrections may seem steep, it’s worth looking at 7-day and 30-day performance charts to understand the full extent of the rally, which, according to some, started gaining momentum after Trump’s election win.

Meanwhile, in Washington, Trump has tapped Elon Musk and ex-presidential candidate Vivek Ramaswamy to head the new Department of Government Efficiency - conveniently named D.O.G.E…

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In the Markets

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🌦️The Data...

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Total crypto market cap

$2.86 trillion (-4.8%)

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What Bitcoin did yesterday

Daily high $85,314 |  Daily low $89,863

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Bitcoin market capitalisation

$1.71 trillion (58.5% of market)

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Bitcoin 24-hour trading volume

$119 billion (-12.31%)

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SP500

-0.29%

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Fear and Greed Index

Extreme Greed

‍Source: Coinmarketcap

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI)

49

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Post Script…

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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