The cryptocurrency market sentiment is neutral to bullish. This means that investors and key technical metrics are experiencing a period of indecision about the real market sentiment, and this is likely to change soon due to the low market volatility!

Part of this sentiment comes from the traditional market, especially when analyzing the monthly correlation with major global indices. Indices like the S&P 500, Dow Jones, NYSE, and Russell 2000 are showing the highest levels of correlation in August 2024. A curious fact is the strong negative correlation with the CBOE Volatility Index, a popular measure of expected stock market volatility based on S&P 500 index options. It is calculated and released in real-time by the CBOE and is often referred to as the fear index or fear gauge.

Peaks in the CBOE Volatility Index have a stronger relationship with drops in the S&P 500 and occasionally form local bottoms in Bitcoin prices. These peaks can be unique or have continuity in volatility, requiring constant monitoring of this metric.