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Crypto traders are weighing which major asset might lead the next upward move as risk appetite cools, according to Santiment.
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Crypto market sentiment has slipped into Fear, with signs showing that investors are temporarily stepping back from moving further down the risk curve, according to sentiment sources.
“It’s clear traders are less interested in obscure altcoins and are instead debating which major asset will break out next,” sentiment platform Santiment said in a report on Saturday.
Santiment said that the crypto market is increasingly focused on larger-cap crypto assets such as Bitcoin (BTC), Ether (ETH), and XRP (XRP). “A heavy focus on large-caps can indicate a more cautious or ‘risk-off’ sentiment among traders,” Santiment said.
Bitcoin’s price “remains indecisive”
It comes amid growing calls from traders for an altcoin season. However, Bitfinex analysts recently said it may not arrive until more crypto ETFs potentially launch later this year.
Meanwhile, on Sunday, the Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted a “Fear” score of 44, after posting “Neutral” readings over the previous two days.
Some traders are also questioning the near-term direction of major cap assets. On Saturday, crypto trader Daan Crypto Traders said that Bitcoin’s price “remains undecisive.”
“My base case scenario remains to see a sweep of the monthly lows, which should then cause some panic and fear of it losing $100K,” Daan Crypto Trades said.
Over the month, Bitcoin is down 5.38%, while Ether is up 9.44%, according to CoinMarketCap.
However, other indicators suggest that the market is still moving down the risk curve.
The “final shakeout” for altcoins, says trader
On Sunday, CoinMarketCap’s Altcoin Season Index posted an “Altcoin Season” score of 56 out of 100. The indicator tips between Altcoin Season and Bitcoin Season based on how the top 100 altcoins have performed against Bitcoin over the past 90 days.
Crypto trader Rekt Fencer said, “This is the final shakeout for altcoins.”
Meanwhile, MN Trading Capital founder Michael van de Poppe said that altcoins are “extremely undervalued.”
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“The cycle has proven that this cycle is completely different than previous cycles,” van de Poppe said.
On Friday, Bitcoin analyst PlanC echoed a similar sentiment.
“Anyone who thinks Bitcoin has to peak in Q4 of this year does not understand statistics or probability,” the analyst said in an X post, arguing that relying on the three previous halving cycles doesn’t provide enough statistically significant data.
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This article first appeared at Cointelegraph.com News
