The strong rally in the cryptocurrency market in recent weeks has led to a sharp shift in investor sentiment. The Crypto Fear and Greed Index rose to 81 points, reaching its highest level of the year, pushing market sentiment into the “Extreme Greed” zone. Just a month ago, the index was in the “Fear” zone, highlighting the rapid reversal in investor risk appetite. Last week, the index was at 41 points, in the “Neutral” level.
Bitcoin ($BTC) continues its upward trend, trading at $79,252 and gaining approximately 0.67% in the last hour.
However, the Fear and Greed Index in the BitcoinSystem On-Chain Terminal data currently shows a “Greed” level with 74 points.
In derivatives markets, high volatility is noteworthy. According to liquidation data from the last 24 hours, a total of $424.5 million in leveraged positions were liquidated. Of this, $334.2 million consisted of long positions and $90.3 million consisted of short positions.
Bitcoin’s on-chain indicators also provide important signals regarding the current structure of the market. While Bitcoin’s current price is around $53,000, the fact that the market price is significantly above this level suggests that a large portion of investors are in profit-taking.
The MVRV ratio is at 1.49. This value indicates that Bitcoin’s market capitalization is approximately 49 percent above its realized value, but remains below the much higher levels seen during overheated periods of past bull markets.
The Net Unrealized Profit/Loss (NUPL) indicator being at 0.33 also suggests that Bitcoin investors are holding unrealized profits overall. The SOPR indicator being at 1.0193 indicates that, on average, Bitcoins moved on the chain are being spent at a profit. SOPR remaining above 1 is considered a signal that profit-taking by investors is continuing.
The Puell Multiple indicator, which compares miners’ earnings to the Bitcoin price, is at 0.93. The indicator being close to 1 suggests that miner earnings have not yet reached excessively high levels compared to historical averages.
*This is not investment advice.
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