- Crypto market sees recovery with BTC and ETH gaining over 2%.
- Fear and Greed Index drops to 20, showing extreme fear.
- Small caps outperform, with FRANKLIN up over 200%.
After a volatile weekend filled with price dips, the crypto market is showing signs of recovery. Leading the charge, Bitcoin ( BTC ) climbed to $91,451 with a 2.2% gain, while Ethereum ( ETH ) followed closely, rising 2.9% to $3,126. Despite this short-term bounce, market participants remain on edge.
The Fear and Greed Index (FGI), a popular sentiment indicator, has plunged to 20 — marking a level of extreme fear. This suggests that while prices are moving up, traders are still uncertain and hesitant to make bold moves. The market cap now sits at $3.29 trillion, with liquidations reaching $451 million — further evidence of the recent volatility.
Altcoins and Small Caps Take the Spotlight
Although Bitcoin and Ethereum are seeing moderate gains, it’s the altcoins and small caps that are turning heads. Among major altcoins, ZEC and 2Z jumped by 9%, followed by SPX, CC, and TAO, each gaining around 7%.
The real action, however, is in the small-cap space. FRANKLIN surged an impressive 214%, while GLMR and LUCIC saw gains of 49% and 47%, respectively. Other notable gainers include LAVA (+41%) and ISLM (+36%). These price movements suggest that despite the fearful sentiment, investors are willing to take calculated risks on high-potential tokens.
Investor Sentiment Remains Cautious
Even with positive price action, the extreme fear reading highlights that market confidence is still lacking. Historically, such low sentiment readings can sometimes signal the early stages of a reversal, as fear often precedes opportunity.
However, with the Altcoin Index sitting at just 19/100, it’s clear that caution continues to dominate the altcoin space. For traders and investors, this could mean an opportunity to enter the market before broader sentiment turns — but only with careful risk management.
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