After a substantial period of investing, it seems crypto enthusiasts have taken a step back when it comes to accumulating assets. As part of this, there has been a notable decrease in the attention placed on less popular and more obscure forms of cryptocurrency, with investors instead having settled back into watching the big names, like Bitcoin and Ethereum.
What this Means
The crypto Fear and Greed Index, which is able to measure overall crypto market sentiment, revealed a ‘Fear’ score of 44. This was especially significant after the same index had posted ‘neutral’ readings for two days prior.
This follows the natural proceedings of cryptocurrency sentiment and demonstrates traders temporarily moving away from the risk curve. Investors of both the big names and lesser-known altcoins appear to be stepping away from the trading platforms and instead paying attention to the assets they already have in their possession.
The Necessity of Crypto Wallets
In order to securely store these assets, crypto investors must have a reliable crypto wallet. When deciding which to own, investors are encouraged to make use of a trusted crypto wallets list. These not only weigh up the advantages and disadvantages of multiple wallets, but they also clue in crypto owners to the various benefits that each individual wallet provides.
New EFTs could change the game
Despite there being an overwhelming call for crypto traders to enter an altcoin season, experts at Bitfinex can’t see this happening until more EFTs are launched. Something they expect to happen later this year.
What about Bitcoin?
Amongst the uncertainty regarding Altcoins, the price of Bitcoin has remained ‘undecisive’, according to crypto trader Daan Crypto Traders. In general, they believe that the coin might experience a significant drop, but the fear of it dropping below $100K, should cause it to recover quite rapidly.
CoinMarketCap recently revealed that over the month, Bitcoin experienced a drop of 5.38% while Ethereum was up 9.44%. Despite this, there are numerous other indicators that suggest that the market is still moving down the risk curve.
What’s Next: Altcoin Season or Bitcoin Season?
CoinMarketCap also owns a reliable tool that indicates whether crypto is likely to enter an Altcoin Season or a Bitcoin season. Recently, the company posted an Altcoin Season score of 56 out of 100. As such, the chances of entering an altcoin season are still relatively high, but it could just as easily slip into a Bitcoin season instead. The indicator works by analysing how well the top 100 altcoins have performed during the last 90 days when compared to Bitcoin. Amongst all this, there is still the sentiment that altcoins are extremely undervalued, and that the coming weeks are to be a shakeout period for the coins.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.