• The Bitcoin Fear and Greed Index (FGI) has moved back into the “greed” zone for the first time since March 30, 2022.
• The index uses a combination of technical and fundamental analysis to measure market sentiment, and is based on metrics including volatility, market momentum/trend, trading volume, social media sentiment, and surveys.
• Bitcoin remains stable at around $23,000 as the index signals a bullish sentiment.
The Bitcoin Fear and Greed Index (FGI) has moved back into the “greed” zone for the first time since March 30, 2022. This is a significant milestone, as it indicates that the sentiment of the market is bullish and that the original cryptocurrency is making significant strides after plummeting to below $16,000 and a two-year low in 2022.
The FGI is published by alternative.me, a website that tracks alternative investments, including Bitcoin. The index uses a combination of technical and fundamental analysis to measure market sentiment and ranges from 0 to 100, with a higher score indicating a higher level of fear and a lower score indicating a higher level of greed.
The various metrics that make up the FGI include volatility, market momentum/trend, trading volume, social media sentiment, and surveys. Volatility is measured by the daily standard deviation of returns and market momentum/trend looks at the direction of the moving averages and the gap between them. Trading volume analyzes the buying and selling pressure of BTC and social media sentiment looks for positive and negative mentions of BTC in social media. Lastly, surveys of investors and traders are used to gauge sentiment towards BTC and the cryptocurrency market as a whole.
The news comes as BTC remains stable at around $23,000 going into the weekend. This is also a bullish signal, as BTC is up nearly 40% year-to-date. With the FGI now firmly in the “greed” zone, the sentiment of the market is looking positive and investors are feeling confident that the original cryptocurrency will continue to make gains.
• Bitcoin dominance has hit 41.5% as of Jan. 20 — the highest level over six months.
• Ethereum dominance is also up and currently stands at 19.4%.
• The market cap for the entire crypto space sits at just under $1 trillion.
The crypto world is abuzz with the news that Bitcoin’s dominance has hit 41.5% as of Jan. 20, the highest level it has been since July of 2022. This metric measures Bitcoin’s current share of the global crypto market cap versus other cryptocurrencies. The news of Bitcoin’s increased dominance is also accompanied by an increase in Ethereum’s dominance, currently standing at 19.4%.
The current market cap for the entire crypto space sits at just under $1 trillion, making it one of the largest asset classes in the world. The BTC-ETH Dominance metric is an oscillator that tracks the macro outperformance trends between the top two crypto-assets. The lower values and downtrends of the metric indicate an outperformance of ETH over Bitcoin, meaning that Ethereum has been outperforming Bitcoin since early 2021.
Investors have been watching the crypto space closely as Bitcoin’s dominance reaches new highs. Many are speculating as to what will happen next and if Bitcoin’s dominance will continue to grow. With the continued growth of the crypto space and the increasing awareness of its potential, it is likely that Bitcoin will remain a key player in the market. Even though Ethereum has been outperforming Bitcoin in recent months, it is still far behind Bitcoin in terms of market cap.
However, one thing is certain, the crypto market is a highly volatile one and anything can happen at any moment. As more people become aware of the potential of crypto assets, it is highly likely that the market will continue to grow and become more stable. As more people invest in crypto assets, the market cap will continue to rise and the crypto space will become more mature.
•FTX’s collapse led to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges since then.
•USDt remains the largest stablecoin by market cap, with the big four stablecoins contributing more than $130 billion to the sector’s total market cap of $138 billion.
•At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges, with Binance holding the highest amount at $24 billion.
The cryptocurrency industry has been gradually growing in strength and popularity, and along with it, its associated stablecoins have been gaining traction too. Stablecoins offer stability against cryptocurrency volatility, and as such, they have become an integral part of the industry. USDT remains the largest stablecoin by market cap, with USDC, Binance USD, and DAI making up the top 4. The entire stablecoin sector has a market cap of $138 billion, with the big four stablecoins contributing more than $130 billion to the figure.
At the moment, about 37 billion stablecoins are held in reserves of cryptocurrency exchanges. Binance is the highest contributor to this figure, with about $24 billion in stablecoins in its reserve. Coinbase has more than $973 million, Huobi $709 million, Bitfinex $145 million, Gemini 98 million, and Gate.io $78 million.
However, the collapse of FTX has lead to market uncertainty and low trust in centralized exchanges, resulting in 3.93 billion stablecoins leaving exchanges in the last 30 days. This has been a major blow to the confidence of the market, as investors are now forced to keep their holdings on decentralized exchanges or in cold storage to ensure their assets are safe.
In light of this, the crypto industry is now looking for ways to ensure the safety of assets, and to increase the trust of investors in centralized exchanges. Whether or not these issues can be resolved in the near future remains to be seen, but it is clear that the industry is working towards a more secure future.
• Meld, a “DeFi, non-custodial, banking protocol”, has denied accusations of insider trading.
• The accusations came from on-chain analysis conducted by TapTools, which highlighted a series of large token sales from a single address.
• Meld stated that the address belongs to a private sale token holder and that they have no control over the actions of such holders.
Meld, a decentralized finance (DeFi) and non-custodial banking protocol, has denied allegations of insider trading. The accusations surfaced after on-chain analysis conducted by TapTools identified a series of large token sales from a single address. The address had sold tokens worth 1.24 million ADA, or about $405,000 at today’s price. TapTools also identified two associated addresses that had sold but never bought MELD tokens, worth a combined 1.04M $ADA, or approximately $340,000. TapTools asked, „where did the tokens come from?“ while speculating the address is controlled by an insider.
In response, Meld denied any involvement and stated the address belongs to a private sale token holder and they have no control over the actions of such holders. The company further clarified that no staff members were involved or benefited from the token sales. Meld also confirmed it has no control over the actions of private sale token holders and that no insider trading had taken place on its platform.
The news is likely to further bolster confidence in the Cardano (ADA) protocol, as it has been gaining ground in the DeFi space. The protocol has seen positive adoption in recent months, and its native token, ADA, is up over 300% in the past year. With the allegations now denied, the protocol is expected to continue its growth. As such, Cardano is likely to remain one of the leading DeFi protocols for the foreseeable future.