Market Overview

The crypto market remains stable, having risen slightly over the past 24 hours, and market capitalisation has reached $2.33 trillion, rebounding from an intraday low of $2.28 trillion. The overall trend mirrors that of stock indices.

Fig. 1. The crypto market is on a short leash near the 50-day MA.

The cryptocurrency market sentiment index remains in the extreme fear zone at 11 points, up 3 points from the day before. Over the past two months, the figure has risen above 25 only twice, and the average for the period barely exceeds 12 — a record low and the longest sustained level in the indicator’s history.

Fig. 2. The crypto market stays in the extreme fear zone for two months.

is trading at $67,700, up around 1% since the start of the day, though it remains below the 50-day moving average. At the same time, BTC is forming another bounce off the upward support line running through the lows of the last two months.

Fig. 3. BTC is forming another rebound from recent support levels.

News Background

According to CoinShares, global investment in crypto funds fell by $414 million last week — the first decline since late February. The outflow affected leading assets: investments in Bitcoin fell by $194 million, in by $222 million, and in by $12 million. The exception was , which attracted $16 million.

CoinShares analysts attribute the first outflow in five weeks to the escalation of the geopolitical situation surrounding Iran and concerns regarding rising inflation. Notably, market expectations regarding the Fed rate for June have shifted from a cut to a hike.

Over the longer term, the picture is mixed. Finality Capital anticipates a multi-stage market reset, which will ultimately form a sustainable bull cycle. Bitcoin Vector co-founder Willy Wu, based on on-chain models, has identified a potential bottom for Bitcoin in the $46K–$54K range.

Analyst Darkfost notes that over 40% of altcoins have come close to or broken their all-time lows — a figure exceeding the peak of the previous bear market (38%).

On the regulatory front, the ECB has highlighted the high concentration of control within the DeFi sector, noting that this simplifies the supervision of market participants.

Meanwhile, despite unrealised losses of $7.5 billion, has purchased an additional 71,179 ETH for $147 million, bringing its reserves to 4.73 million ETH (3.92% of the supply).

The FxPro Analyst Team