Extreme sentiment overshadows the cryptocurrency market
Many crypto players are looking to withdraw from the market as the fear index drops to an alarming level and accounts continuously plummet.
Follow Reuters“crypto winter” took place and entered the ninth week when Bitcoin Still no sign of recovery. Over the past two months, the world’s most expensive cryptocurrency has lost a third of its value. “Cryptocurrency winter” is determined by experts based on many factors, including: the decline of large-cap coins such as Bitcoin, Ethereum; Market capitalization; related news…
Joseph Edwards, head of financial strategy at fund management firm Solrise Finance, said: “Bitcoin is no longer attractive to retail investors. Nobody really sees the potential for 10x returns anymore.” .
Reuters Citing experts, the economy is no longer supportive of a risky, volatile asset like cryptocurrencies. As worries about inflation, geopolitical issues, and bad news keep coming, crypto is no longer in many people’s portfolios.
“An extreme sentiment is looming over the market, crypto holders are panicking, all the same as we saw when the market bottomed before.” Yahoo! quoted Yves Lamoureux, aka “Canadian whale”, president of macroeconomic research firm Lamoureux.
Since last November after Bitcoin hit a record price of nearly $70,000, Lamoureux, has warned that the market is about to enter a “crypto winter.”
Meanwhile Bloomberg believes that after the “crypto winter” periods, speculators will be removed from the market, making way for those who truly believe in blockchain technology, cryptocurrencies as a long-term store of value. . “But will the crypto ecosystem come out after the winter is over? Many cryptocurrencies will become worthless and many investors will have to accept losses like what we saw during the bubble wave. dotcom ball,” the site reads.
According to experts, it will be difficult for the market to have a rally in the near future. However, players who survive at this stage or new investors emerge will demonstrate the long-term viability of cryptocurrencies, as long as it remains based on the principles of a decentralized financial system. concentrate. There will be no more hot rallies, but investors will get used to slow and steady growth in the long run.
The Fear & Greed index measured by Alternative statistics shows that users’ fear of Bitcoin and other cryptocurrencies has dropped to a record level, since March 2020. On May 17, this index dropped to the 8th scale, and the average level over the past week is 13.
Fear & Greed is scored on a scale from 0 to 100. The more scared the user, the lower the score. The scale is constantly updated based on many parameters, including sell-off volume, market capitalization, actual surveys from participants, surveys from Google Trends, social media channels. …
Reuters Quotes Lindsey Bell, chief market and currency strategist at Ally Invest: “Many people are wondering what to do now, should they cut their losses or keep investing. This is a reminder to everyone that Cryptocurrencies probably shouldn’t make up more than 1-2% of people’s portfolios.
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