Crypto Market Sees $51 Billion Influx Amidst Bullish Momentum

TL;DR
1. $51 billion injection boosts crypto market capitalization to $1.71 trillion in 24 hours.
2.Crypto Fear and Greed Index rises to 66, indicating increased short-term price expectations.

The crypto market has been no stranger to turbulence, but the past month has been particularly tumultuous. Following the anticipation surrounding the approval of Bitcoin ETF products by the US Securities Exchange Commission (SEC) on January 10, hopes were high for a surge in the industry.

However, contrary to expectations, cryptocurrency prices took a nosedive, dampening overall market sentiment. Yet, a glimmer of hope emerged in the last 24 hours as a staggering $51 billion flowed into the crypto market, providing much-needed relief to investors.

$51 Billion Surge Boosts Market

This infusion of $51 billion has propelled the total crypto market capitalization from $1.65 trillion to $1.71 trillion within the span of just 24 hours, marking a notable 3.6% increase, as reported by CoinMarketCap.

Analyzing the market movements since the approval of Bitcoin ETFs, the total valuation of all cryptocurrencies reached its pinnacle at $1.81 trillion on January 11, the day following the approvals. However, the market swiftly reversed course, reaching a local low of $1.51 trillion by January 23, indicating a significant 16.6% downturn in value.

Following this bottoming out, the crypto market has been gradually climbing, culminating in the recent $51 billion injection.

Total crypto market cap per CoinMarketCap

Uplifting Market Sentiment

Concurrently, market sentiment has experienced an uplift, seemingly hitting a trough. The Crypto Fear and Greed Index (CFGI) has edged higher, reflecting heightened expectations of short-term price increases.

The CFGI witnessed a four-point surge on February 8, reaching a reading of 66, up from 62 the previous day. Over the past month, market sentiment has fluctuated wildly, oscillating from extreme greed with a reading of 76 immediately after Bitcoin ETF approvals to a low of 48 on January 24, following BTC's loss of $40,000 support.

The CFGI, which operates on a scale of 0 to 100, amalgamates data from various sources to assess market sentiment based on factors such as volatility, market momentum, and social media activity. A reading of 0 indicates extreme fear, while 100 signifies extreme greed.

The Crypto Fear and Greed Index per Alternative

Conclusion：Crypto Market Turbulence

The cryptocurrency market recently experienced turbulence despite expectations of a surge following Bitcoin ETF approvals by the SEC. Contrary to forecasts, prices plummeted, but a $51 billion influx within 24 hours revived market sentiment, boosting total market capitalization by 3.6%. Since reaching its peak post-ETF approvals, the market saw a significant downturn but has gradually recovered, with the Crypto Fear and Greed Index showing improved sentiment, reaching 66 on February 8 from a low of 48 on January 24.