Crypto Fear and Greed Index hit Measurement 50 for Tuesday “neutral” For the First Time Since Jan. 17 The shift in sentiment ended a stretch of 108 days dominated by negativity. The index gauges market sentiment using volatility, momentum, trading volume, and social signals. The score is below 25. “extreme fear” or risk aversion, while 26–49 reflects cautious positioning or “fear,” With higher readings, this indicates improving investor confidence.
Crypto Fear and Greed Index Source: Alternative.me
This is the first time that this index has reached 50 since January. It follows on from a recovery of 5.45% for May’s total crypto-market capitalization. The market has grown by 16.51% since March. It is now $2.66 trillion, up from $2.28 billion.
The total market value on the chart for one month. Source: Cointelegraph/TradingView
Bitcoin has been trying to reach a level above $81,000. This is what’s driving the positive change in public sentiment. Darkfost is a cryptocurrency analyst noted BTC’s sentiment has turned more positive, as its price reaches higher levels. Analyst added that another sentiment index between -100 and +100 has also entered the greed zone. Investor confidence has improved, and there is a preference for holding BTC positions rather than selling them.
Bitcoin unified sentiment index. Source: CryptoQuant
In January, the sentiment changed in a similar way before it faded. Darkfost cited the current phase of the market as an opportunity for a pivot. Investor behavior will determine the next step.
Related: Bitcoin ‘supercycle’ or a bear market rally? BTC breaking $81K has traders at odds
Outflows of stablecoins can stall the momentum
Binance stablecoins netflows have recorded Since April 25, there has been a total outflow of 11.8 billion dollars. This indicator tracks the flow of stablecoins in and out of an exchange, and is frequently used to gauge the amount of buying power available.
A positive net flow indicates capital flowing into the exchanges. This is often associated with an accumulation. Negative net flows indicate capital departure, which may reduce the liquidity available for crypto spot purchases.
Source: CryptoQuant. Source: CryptoQuant
Recent data indicates a persistent drainage phase. Daily outflows have exceeded $1.5 billion over multiple sessions. Binance experienced consistent inflows in early April as Bitcoin rose from $74,000 to $78,000. This inflow has reversed.
Market analyst Crazzyblockk noted The earlier accumulation of stablecoins has helped to fuel this upward trend. This current trend of outflows suggests that this pool has thinned over the short-term, possibly reducing the momentum in favor of BTC and other cryptoassets.
Related: Crypto products post 5th straight week of inflows despite mid-week selloff
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Source: cointelegraph.com
