By Anisha Pandey
Edited by Julia Sakovich
Updated
3 min read
The crypto fear and greed index currently sits at 34, indicating fear among investors.
The cryptocurrency community is still reeling from a recent market crash that wiped out over 17% of its value. Despite signs of a crypto market rebound, BitMEX co-founder Arthur Hayes has cautioned his 500K X followers about an impending second wave of the crash amid geopolitical tensions in the Middle East.
The global crypto market and stock market, including the S&P 500 and NASDAQ, are on an upward trajectory today. Bitcoin, currently trading around $55,000, has increased by over 4% in the past 24 hours. Ethereum (ETH) has similarly shown signs of recovery, rising by over 6.5% during the same period. In addition, Japan’s Nikkei index has also rebounded 10% after a 12% loss in previous sessions.
Despite these encouraging signs, Hayes remains cautious. He stated that the initial wave of market impact has passed, but warned that this relief might be temporary. He anticipates continued market volatility, affecting both stocks and crypto markets.
Hayes stated that the issue of over-leveraged investors in traditional finance (TradFi) will soon become apparent. He believes that this will trigger a second wave of market turmoil. If the US Federal Reserve opts for the bailout, the market might need to endure additional pain by Friday.
The crypto fear and greed index currently sits at 34, indicating fear among investors. Earlier today, renowned crypto analyst Jason Pizzino remarked on the community’s growing concern about a potential recession.
Pizzino pointed out that Bitcoin has faced the largest correction in this bull market, with a $21,000 drop in just seven days. He noted that extreme fear has spread across the markets, and fears of a recession are resurfacing.
Despite the bearish outlook, the analyst remains optimistic about the market’s potential for recovery. He acknowledged that corrections are a natural part of market cycles and typically become more violent, which in turn, triggers stronger emotional responses from investors. Pizzino suggested that the current dip can be a buying opportunity, stating:
“This might be one of those great opportunities again before our trend reversal signal finally plays out and we get to a new fresh high price, and I still think that could potentially be later this year.”
Echoing this sentiment, several industry experts, including MicroStrategy founder and chairman Michael Saylor, advise investors to hold onto their crypto assets rather than panic selling.
Meanwhile, the global crypto market has seen an upward trend today. Data from CoinMarketCap shows the market cap at $1.95 trillion on Tuesday, up by 5.17% in the past 24 hours. However, the recorded crypto market volume during the time is $164.3 billion, which marks a 10.11% decrease from Monday.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.
