The crypto markets are getting back their lost ground somehow, although not yet completely, after suffering a very deep drop of over a year. The recent change in the Fear & Greed Index was very drastic and it set off a bullish trend with a very steep rise. Bitcoin, which has been under pressure for seven weeks, is currently priced at around USD 93,000. Bitcoin’s total market cap of USD 3 trillion temporarily went down to USD 2.9 trillion before it recovered again.
Some analysts see the current situation as a thin, hyper-reactive one, where the traders’ responses to macroeconomic news are immediate and very fast. The huge price fluctuations, however, may be an indication of the past repeating itself, as the historical patterns do: the fear and greed index is very rare to be at the level of 10 for over a week, and this time it exactly followed that.
Hopelessness turned into optimism when the Fed announced a meeting, and the market started guessing that the interest rates would be cut by 25bps with 90% certainty. Institutional players have approximately 11% of the total Bitcoin supply through ETFs and treasuries, which means they won’t be selling their stocks during the year-end. However, they are likely to be the first ones to flood the market with their liquid cash next month. Furthermore, some analysts think that with the possible easing of monetary policy, February and March will see new capital inflows, hence the bullish outlook for Q1.
The stablecoin market cap has already hit the highest ever mark, which is a clear indication that there is a lot of capital waiting on the sidelines. On the other hand, a few altcoins are still doing quite well in terms of their price movements, which could be interpreted as the early signs of the rotation between sectors and that are going to get stronger if the conditions get better.
In order to assist the investors in their navigation through the turbulent waters, CoinMarketCap has rolled out a couple of significant tools. The latest CMC20 Index (SC20) offers one S&P-like exposure to the top 20 assets on BNB Chain via a single token that is tradable and is automatically rebalanced every month.
Additionally, the upgraded CMCAI chatbot provides real-time insights powered by ETF flows, on-chain data, derivatives trends, and sentiment analysis drawn from CMC’s 900 million monthly page views.CMC says these tools are part of a broader effort to transform raw market data into actionable intelligence as crypto heads into a potentially pivotal 2025.