Big investors are dipping their toes into crypto waters again after a bumper month for bitcoin.
“For the most part, people are more confident than they were a month ago,” said Joseph Edwards, investment adviser at Enigma Securities. “If peak inflation is indeed behind us for now, then long-term interest rates may move lower as we approach the end of the inflation-focused rate-hiking cycle,” analysts at Fidelity Digital Assets wrote.Activity in the options market indicated traders were rushing to place bets just after the Fed meet, a sign of the importance the market is placing on it, crypto liquidity provider B2C2 said.
Crypto data platform Coinglass’s bitcoin Fear & Greed index - where 0 indicates extreme fear and 100 extreme greed - is hovering at 61, the highest level since mid-November 2021, just after bitcoin began retreating from its peak.BITCOIN ‘DOMINANCE’ Additionally, bitcoin’s “dominance” or share of the total crypto market has hovered around 41% this month, levels not seen since last July. Analysts at Citi said this mimicked a similar jump in bitcoin dominance in April 2019, when a bitcoin rally marked a crypto market bottom.