According to fresh insights from Alice, Head of Research at CoinMarketCap (CMC), sentiment toward cryptocurrencies has sharply recovered after reaching its lowest point in more than a year. Before rising to 22, the Fear and Greed Index momentarily fell to 10 levels not seen since 2023. Bitcoin is currently trading at about USD 93,000 after seven weeks of declining pressure, and the total market capitalization has recovered above USD 3 trillion.
“We recorded the CMC Fear & Greed reading at 10 the lowest we have ever seen since launching DEX in 2023,” Alice said. “Right now, as we speak, sentiment is back to 22. That is a true V-shape recovery.”
She highlighted that these rare extreme lows tend to resolve quickly. “The index never stays at 15 for more than seven days, and this time it was the same,” she noted. The pattern, she argued, points to renewed confidence heading into 2025.
Much of that optimism hinges on macroeconomic shifts.“Everyone’s eye is on the Fed. A rate cut is coming in seven days,” Alice said. “The market is pricing a 90% possibility of a 25-basis-point cut.”Institutions now holding roughly 11% of all Bitcoin through ETFs and treasuries are expected to re-enter the market as the new year begins. “With this rate cut and potential QE, we will see another inflow of capital. We predict February and March to be the bull market for us again.”
On-chain signals echo that sentiment.“Stablecoin market cap is at an all-time high. That means dry powder on the side,” she explained. Even in the recent downturn, select altcoins delivered extraordinary gains. “APE is up 12x, BitCash 11x. The market is telling us altcoin season is forming.”
Looking forward, Alice said three narratives are shaping early 2025 momentum: prediction markets, perpetual DEXs, and stablecoin infrastructure. “These are the sectors you want to rotate into in Q1 next year,” she emphasized.
To equip investors for this changing landscape, Alice introduced two new tools from CoinMarketCap. The CMC20 Index (SC20) offers one-token exposure to the top 20 assets on BNB Chain. “This is your S&P 500 equivalent for crypto,” she said.
She also unveiled CMCAI, a major upgrade to CMC’s analytics suite. “We just launched CMCAI a ChatGPT equivalent for crypto,” Alice said. “It has all the ETF flows, derivatives data, on-chain sentiment, and insights from 900 million monthly page views. Ask the data. Ask CMCAI.”
Closing her session, she underscored the importance of guidance in a fast-changing market. “You cannot fight this battle alone,” Alice said. “You need tools, insights, and data. And we’re building exactly that.”