The calm was short-lived. Indeed, the crypto market is plunging back into fear, according to the Crypto Fear & Greed Index, which dropped to 44 after several weeks of stability. This psychological signal is not isolated, as it accompanies a clear shift in investment flows, leaving the most volatile altcoins to refocus on the heavyweights of the sector, bitcoin and Ethereum.
Investors seem to step back facing the rising volatility of low-cap cryptos, like the explosive one announced by technical signals on bitcoin and Ethereum. According to the analysis platform Santiment, market players reduce their exposure to the riskiest assets.
“ Traders are less interested in obscure altcoins and now debate the major asset that could lead the next bullish impulse ”, indicates the report published on Saturday. This refocus is clearly on safe havens like bitcoin, Ethereum, and XRP, reflecting cautious behavior, typical of a risk-averse market climate.
This trend is confirmed by precise market data and key indicators :
Trader Daan Crypto Trades believes that the bitcoin price remains undecided and anticipates a fall towards monthly lows, which could trigger panic and fear of a drop below $100,000.
Analysts from Bitfinex temper hopes of an altcoin rebound, citing a recovery scenario conditioned on the launch of new crypto ETFs later this year.
These elements signal a clear transition in investor strategies, now more concerned with preserving their capital than taking positions on volatile assets.
Some indicators reveal a more nuanced reading. The Altcoin Season Index published showed 56 out of 100 this Sunday, a score indicating that altcoins have generally outperformed bitcoin over the last 90 days. This dissonance was highlighted by trader Rekt Fencer, who believes that “ this is the last shakeout for altcoins ”. In other words, it is a necessary purge before a possible return of bullish momentum in this segment.
Other voices, like Michael van de Poppe, founder of MN Trading Capital, insist on the current valuation of altcoins, which he considers “ extremely undervalued ”. He emphasizes that “ this cycle is fundamentally different from previous ones ”, pointing to a break in historical crypto market dynamics.
This view is shared by analyst PlanC, who believes that those who think bitcoin necessarily has to reach its peak in the fourth quarter base their analysis on too fragile statistical grounds. According to him, referring exclusively to the previous three halving cycles is not enough to make reliable forecasts.
These statements reveal the structural tensions currently crossing the market. On one side, growing caution drives investors to the most established assets; on the other, technical signals and expert convictions suggest that the window of opportunity for altcoins might only be in a temporary retracement phase. The outcome will largely depend on exogenous factors, such as the potential approval of new crypto ETFs by the end of the year.
