Bitcoin's effect on other cryptocurrencies
Credits: Nasadaq

Crypto market become fearful as Bitcoin drops by 10%

The last 2 weeks have been good for the crypto market as Bitcoin rallied and ETH also touched $2,000. However, the real question is whether the rally will continue or will we see a major dump. The sentiment in the crypto market was getting better, but as Bitcoin dumped more than 10% to $21k, investors have again become fearful. The crypto greed and fear index also shows that we are still in the fear zone. It is still better than “extreme fear” around 2 months back.

Crypto markets right now

The latest rally was quite good for Bitcoin, Ethereum, and some stablecoins. But as soon as Bitcoin dropped to $21k, the prices of other coins fell drastically as well. It is quite difficult to expect a major rally that will take Bitcoin to new highs before the next halving happens. Plus, the recession has also made things much more complicated.

There is just so much confusion and volatility in the market right now that we cannot predict where the price will be in 1 week. We could be back at $25k, trying to breach the level or make a new low this year. However, the positive news is that investors are still fearful, which is shown by the fear and greed index.

Crypto market become fearful

The current score is 29, which shows that the latest rally was good but not enough to make a lasting positive sentiment. Last week, the score was 42, which indicates the markers still aren’t ready for another rally. It also indicates we may not see another major correction as well.

What should you do right now?

The current prices look like a good time to invest. Bitcoin is at $21k, which is a great entry point and altcoins also look decently priced. If you are already invested in some cryptocurrencies, then DCA is the best option. Seeing the current market situation, Ethereum looks a little pricey, but Bitcoin falling below $20k could bring it down to more reasonable price levels.

Do note that this is not financial advice, and you should do your own research before investing.

What are your thoughts as the crypto market become fearful as Bitcoin drops by more than 10%? And do you think we will test $25k again? Let us know in the comments below. And, if you found our content informative, share it with your friends.

Also Read: Korean regulators are acting against crypto exchanges operating illegally.