- Changpeng Zhao views the current market dip as temporary before a new all-time high.
- Only cryptocurrencies with strong fundamentals are likely to reach new price peaks.
- The Crypto Fear & Greed Index at 37 signals cautious investor sentiment amid market volatility.
Former Binance CEO Changpeng Zhao (CZ) has described the current phase of the crypto market as a temporary dip preceding a new all-time high (ATH). His comments provide a long-term bullish perspective during a period of widespread investor caution, as reflected by the Crypto Fear & Greed Index.
In a recent post on the social media platform X, Zhao noted that any market movement before the next ATH should be viewed as a temporary decline. He emphasized that only a small number of cryptocurrencies with strong fundamentals are likely to reach new highs.
Related: Why Is The Crypto Market Going Down Today?
Crypto Fear & Greed Index Shows Cautious Sentiment
Zhao’s commentary comes as market sentiment shows signs of recovery after a period of fear. The Crypto Fear & Greed Index, a key indicator of investor emotion, currently registers a score of 49, which falls within the “Neutral” category. This is an improvement from a recent reading of 37 (“Fear”).
The index measures market sentiment on a scale from 0 (Extreme Fear) to 100 (Extreme Greed). The current neutral reading signals that the intense risk aversion seen earlier has subsided, but investors remain cautious and lack strong bullish conviction.
Historical Sentiment Data
An analysis of the Fear & Greed Index over several years shows that “Fear” and “Neutral” are the most common emotional states in the cryptocurrency market. Historically, the market has spent approximately 30.75% of its trading days in a state of “Fear,” while “Neutral” sentiment has accounted for 26.94% of days.
Related: Crypto Sentiment Turns Neutral: What Happens Next?
A two-year chart mapping the Crypto Fear & Greed Index against Bitcoin’s price shows a clear connection between investor sentiment and market performance. Bitcoin’s price movements (in grey) correspond with fluctuations in the sentiment index (shown in green, yellow, and red).
Periods marked by high Greed readings, typically above the 60 to 80 range, align with Bitcoin price peaks. Conversely, phases of Fear, identified by values below 40, coincide with corrections or price declines, often in the range of $40,000 to $60,000.
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