- Crypto market rebounds after multi-day decline.
- ETF approvals and shutdown resolution spark mild recovery.
- Fear & Greed Index remains in Extreme Fear territory.
After several days of market declines, the crypto market finally showed signs of life. The recovery was sparked largely by positive developments such as ETF approvals and a resolution to the U.S. government shutdown. This combination helped Bitcoin ( BTC ) and Ethereum ( ETH ) post modest gains.
Bitcoin rose by 0.3%, reaching $103,767, while Ethereum surged by 2.9%, now priced at $3,546. This mild bounce is seen as a relief rally rather than a full-blown recovery, as broader market sentiment remains cautious.
The crypto market cap has risen to $3.71 trillion, indicating renewed interest, albeit cautiously. However, over $589 million worth of positions were liquidated, showing that volatility is still very much in play.
Fear Still Dominates Sentiment
Despite the bounce, investor sentiment remains shaky. The Fear and Greed Index (FGI) has dropped to 15, firmly in the “Extreme Fear” category. This level of fear is comparable to lows seen back in March, reflecting continued skepticism from traders and investors.
The macroeconomic environment, regulatory uncertainty, and recent market turbulence have all contributed to this fear-driven mindset. Even though structural developments like ETF approvals are positive, they haven’t been enough to fully restore confidence.
What Comes Next for the Market?
With key catalysts like ETF approvals in motion and the U.S. government shutdown behind us, there could be room for further recovery. However, sentiment needs to shift, and liquidity must improve for a sustained upward trend.
For now, the market remains in a fragile state, balancing between optimism from institutional involvement and fear from ongoing volatility. Investors are advised to remain cautious and watch for stronger signs of trend reversal before jumping in.
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