Can weekend change crypto investor sentiment?
Crypto investors have been struggling to make a decision for over a month now, as regulatory issues have been posing challenges. The United States Securities & Exchange Commission’s lawsuits against Binance and Coinbase have contributed to this sentiment. However, could this change soon?
The Crypto Fear & Greed Index Remains Neutral
After the market surge in Q1 2023, where Bitcoin reached the $30,000 level, the market has been spiraling downward. This has resulted in investors being hesitant to bet on the market’s direction, leading to the Crypto Fear & Greed Index remaining in neutral territory for an extended period.
The index currently sits at a complete neutral center of 50 on a scale that ranges from 1-100, with 1-25 representing extreme fear, 26-46 indicating fear, 54-75 indicating greed, and 76-100 indicating extreme greed. The neutral zone is between 47-53.
The index indicates a lack of investor activity at this point, which is understandable considering that investors are waiting for more clarity from regulators before deciding whether to invest in digital assets now or not.
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The Fear & Greed Index has been in neutral territory for over a month. | Source: alternative.me
The index has been in neutral territory for most of the last month, as the battle between the bulls and the bears comes to a standstill. Therefore, no significant movement is expected in either direction while the index remains in this neutral zone.
Can The Weekend Shift Market Sentiment?
Historically, the weekend is characterized by low volatility due to reduced investor participation in the markets. However, there have been times when the weekend has seen the most bullish or bearish movements for the market.
The total market cap is currently at $1.074 trillion as investors capitulate. | Source: Crypto Total Market Cap on TradingView.com
As the market heads into another weekend, there is a possibility of a shift occurring during this time, although it remains low. 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.
As such, there could be a rapid surge if the bulls can surpass the $27,000 level for Bitcoin in the next few days. However, the bears also have the opportunity to take control during this time, particularly if Bitcoin fails to hold the $26,000 support level.
Regardless, a swift movement in either direction could prompt investors to jump back into the market once more.