Despite a short-term rebound in the virtual assets market, cautious sentiment persists… investor sentiment is 'fear'

Minseung Kang

Summary

The virtual assets market rebounded in the short term, but investor sentiment was analyzed as still being in a state of fear.
Major assets such as Bitcoin showed slight gains, but remained in a downtrend on the week.
Funds have not moved decisively from Bitcoin to altcoins, so it is interpreted as being closer to a technical rebound than a trend reversal.

The virtual assets market is showing a short-term rebound, but overall investor sentiment remains subdued, analysis suggests.

On the 19th, according to crypto-focused outlet CryptoDNES, the total market capitalization of virtual assets (cryptocurrencies) showed a slight increase at around $2.93 trillion. Meanwhile, the Fear & Greed Index remained in the 'fear' zone, indicating that the market's cautious sentiment has not eased.

Bitcoin (BTC) traded around $87,000 and was slightly higher intraday, but was down more than 6% on the week. Also, investors appear to prefer Bitcoin, which is perceived as a relatively safe asset compared with altcoins.

Ethereum (ETH) held the $2,900 level and showed a better short-term performance than Bitcoin, but its weekly decline exceeded 10%. The weakness across major altcoins is also reflected in the Altcoin Season Index (15). There are no clear signs yet that funds are moving decisively from Bitcoin to altcoins.

Binance Coin (BNB) and XRP also showed slight rebounds on the day but continued to be down on the week. This has been interpreted to mean that the recent price recovery is closer to a technical rebound than a trend reversal.

The outlet said, "While some signals suggest that prices are attempting to enter a stabilization phase across the market, fear persists," adding, "If altcoins do not outperform Bitcoin's returns, it will be difficult to see this as the start of a new upward cycle."