The crypto market continues to flash bullish alerts, with the CMC Concern & Greed Index holding at 67 regardless of a minor pullback from yesterday.
Whereas greed has persevered for over every week, latest shifts in capital movement and derivatives exercise counsel the market could also be getting into a extra unstable section.
Greed stays elevated, however warning warranted
Market sentiment stays within the “Greed” zone for the ninth straight day, down only one level from the earlier session. That mentioned, the index has climbed 24 factors over the previous month, reflecting rising investor optimism. Traditionally, sustained greed typically precedes short-term corrections, however the backdrop of a 24.3% market cap improve over 30 days factors to structural power beneath the floor.
Altcoin momentum builds as Bitcoin dominance slips
Capital rotation out of Bitcoin and into altcoins is choosing up velocity. Bitcoin’s dominance dropped 4.18% over the previous week, falling to 59.58%, whereas Ethereum’s share climbed to 11.69%. The Altcoin Season Index surged 229% month-over-month to 56/100, signaling a transitional section towards a broader altcoin rally. Whereas not but a full-fledged altseason, the info suggests rising danger urge for food amongst merchants.
Derivatives spike factors to leverage strain
Perpetual open curiosity soared 12% prior to now 24 hours, reaching $847 billion. In the meantime, funding charges jumped to 0.0143—up 457% in a month—indicating an aggressive tilt towards lengthy positions. Bitcoin liquidations additionally spiked to $49.6 million in 24 hours, up 230% from the prior day, underscoring the chance of volatility in an overheated derivatives market.
Whereas underlying sentiment stays bullish, the mix of excessive leverage and elevated funding charges means markets might be weak to a squeeze. Merchants ought to look ahead to indicators of a cooling section or continued capital migration into altcoins.
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