The rally experienced by the cryptocurrency market in the month of March seems to have stalled. The total capitalization of cryptocurrencies has once again fallen below $2 trillion. In the case of bitcoin, the digital asset is far from its November 2021 high, when it hit $67,582, and is struggling to hold onto $40,000. A prick that is already being felt in the fear and greed index of cryptocurrencies, which has moved into the “extreme risk” range.
What exactly is the “Cryptocurrency Fear and Greed Index”? Like the “fear index” of the Stock Exchange, this indicator reflects the mood of crypto investors. Created by cryptocurrency analysis website Alternative.me, the index returns a reading between one and 100. When the index is in the higher ranges, it means that greed has taken over the market and buyers abound. For its part, the lower readings show the fear of investors and their willingness to sell.
Last week, the index stood at 37 and now it has dropped to 22. Considering that at the end of March, the indicator was in the 60 or “greed” range, the highest so far in 2022, leading cryptocurrency experts do not rule out further declines. Specifically, Arthur Hayes, co-founder of cryptocurrency trading platform BitMEX, believes that “Bitcoin may drop 25% to $30,000 per coin in June, and Ether may follow suit, falling more than 16% to $2,500. dollars,” according to Fortune.
On the other hand, other experts in the sector maintain their commitment to these digital currencies. For example, Antoni Trenchev, CEO of Nexo, assures that bitcoin will rise to 100,000 dollars in the next 12 months, since large investors have not stopped buying cryptocurrencies despite the current puncture. Or Cathie Wood, CEO and founder of ARK Invest, who maintains that she sees bitcoin reaching one million dollars at some point between 2026 and 2030. According to her, this impulse will take place with the entry of more institutional investors in the cryptocurrency market. .
Increased demand from institutional investors
The CEO of CryptoQuant, Ki Young Ju, agrees with the argument of Cathie Wood, who considers that the purchase of bitcoins by institutional investors “could once again be the great narrative” in the cryptocurrency space, according to Cointelegraph.
Ki is based on figures from the professional trading division of the American exchange Coinbase, which confirms that the flow of sales of this cryptocurrency continues to be fluid, as reflected in the fact that, in a single day, 30,000 bitcoins were moved. And it is not an isolated event, assures the CEO of CryptoQuant, since a similar behavior was registered in the previous month.
Dogecoin, the most sought after in the US
Although bitcoin is the main cryptocurrency by capitalization volume, it is not the most sought after in the US. That title is held by the meme cryptocurrency Dogecoin, according to research by Coin Insider. Specifically, it is the one that arouses the most interest in a total of twenty-three states, including Illinois, Florida, Hawaii and New Jersey. Bitcoin is in second place, while ethereum is in third place.
For its part, Shiba Inu, which debuted a little over a year and a half ago and with growth of up to 14,000,000%, is the most sought-after altcoin to invest in seven US states, including California, New York, Texas and Nevada.
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