A crypto market rally is happening today, with Bitcoin slowly approaching the important resistance of $70,000. Ethereum is nearing $2,000, while tokens like Ondo, Venice Token (VVV), Lido DAO (LDO), Aave, XRP, and Cardano being among the top gainers.
Crypto Market Rally Triggered by Rising Fear and Greed Index
One reason why the crypto market rally is happening today is that the Fear and Greed Index has been in an uptrend in the past few days. Data compiled by CoinMarketCap shows that the index has jumped from this month’s low of 17 to the neutral level of 40.
This is an important metric that looks at several important numbers like market volatility, activity in the derivatives market, market composition, and price momentum. It also uses proprietary data, including social trend searches and engagement metrics.
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Historically, the Fear and Greed Index is one of the most accurate indicators in the crypto industry. In most cases, Bitcoin and most altcoins tend to buy the dip whenever the index moves to the fear or extreme fear zones.
Crypto Fear and Greed Index chart | Source: CMC
Bitcoin and Ethereum ETF Inflows
The crypto market rally is also happening as investors start buying Bitcoin, Ethereum, and other altcoin ETFs inflows have jumped in the past few days.
Data shows that spot Bitcoin ETF inflows have jumped in the last five consecutive days. They have added over $725 million in this period. The monthly inflows have jumped by $427 million.
Similarly, Ethereum ETF inflows have jumped by over $271 million this month, while XRP and Solana funds have added $6.77 million and $7.24 million in assets. This growth is a sign that investors are starting to rotate back to the crypto market.
Notably, these inflows are happening at a time when the stock market has started being highly volatile. As such, there are signs that investors
Strategy is No Longer Selling Bitcoin
Meanwhile, Bitcoin has held steady after Michael Saylor’s Strategy announced its corporate actions on Monday. In a statement, the company said that it did not sell any Bitcoins for two consecutive weeks. Before that, it sold coins worth over $200 million.
The company now holds over $3.2 billion in cash, which are enough to pay its dividends for almost two years. This means that it may sell more shares this week and then continue its pause in the coming months.
Analysts were expecting the company to be in a selling spree after the recent retreat of its preferred stocks.
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