The crypto market starts the new week modestly higher, with Bitcoin gaining 0.8% and trading around $89,700. Ethereum is up about 1% and has moved back above the $3,000 level, while BNB has also added 1% but remains below $900. XRP, Solana, and Cardano are slightly in the red, highlighting mixed performance among major assets.
Despite the positive start to the day, weekly performance remains negative across most large-cap cryptocurrencies. Bitcoin is down 0.3% over the past seven days, while Ethereum and BNB are lower by around 3%. XRP has declined roughly 4% on the week, and Solana has lost close to 5%, continuing to underperform relative to peers.
The total cryptocurrency market capitalization has increased by 1.1% on the day, pushing just above the $3T mark. While this move brings the market back above a key psychological threshold, overall capitalization remains well below recent monthly highs, and broader momentum appears limited.
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Sentiment Remains Weak
Market sentiment continues to reflect caution. The Crypto Fear and Greed Index currently stands at 25, indicating extreme fear. Notably, the index has failed to reach neutral territory for more than a month and has not exceeded a reading of 30 during that period.
The CoinMarketCap sentiment indicator shows a similar picture, registering 29 and signaling fear. This prolonged period of negative sentiment suggests that investors remain hesitant, even during sessions where prices attempt to stabilize or recover.
Read also: How To Use Crypto Fear and Greed Index To Your Advantage?
Macro Context And External Markets
Japan raised interest rates last week, a move that had been closely watched due to concerns around global liquidity and yen carry trades. However, the crypto market showed little immediate reaction, with no notable sell-off following the decision.
In traditional markets, gold has continued to attract strong demand, reaching new all-time highs amid expectations of future rate cuts and ongoing geopolitical tensions. The continued strength in precious metals contrasts with crypto’s more subdued performance and highlights a broader preference for defensive assets.
Read also: How Interest Rates Impact Bitcoin: Exploring the Correlation
Outlook
While today’s gains offer some short-term relief, the broader picture remains unchanged. Weekly losses across major cryptocurrencies and persistent fear-driven sentiment suggest that the market is still searching for a clearer directional catalyst. For now, price action remains cautious, with investors closely watching macro developments and year-end liquidity conditions.
