Hodler temporarily stopped taking profits
Long-term Bitcoin holders (Hodlers) are pausing profit-taking, reflecting a shift in sentiment akin to mid-2021 before Bitcoin hit its all-time high of $69,000. This indicates a change in strategy for long-term investors, who have been capitalizing on gains since the beginning of the year.
All is quiet on the sponsorship front
Current crypto funding rates have been neutral for a long time. This shows a lack of enthusiasm among speculators for Bitcoin and altcoins this month. In the past, funding rate hikes have stimulated sharp price increases, but currently, the market is experiencing a quiet period. However, this calm could signal a strong return to price volatility in the future.
To be afraid or not to be afraid?
Crypto sentiment is threatened by the lack of significant volatility. The Crypto Fear & Greed Index reflects traders' feelings of insecurity. This index currently shows that the market is in a state of "fear", reflecting a lack of motivation and a waiting mentality. Bitcoin's on-chain activity also showed a similar level of calmness as in 2019, suggesting that the market is in a "wait and see" phase.
👉In short
The cryptocurrency market is currently in a quiet phase, with long-term investors pausing profit-taking and funding rates at neutral levels. Market sentiment reflects anxiety and insecurity, but these factors could lead to significant fluctuations in the future. This is especially important when considering macroeconomic factors and upcoming events that may affect the market.
