Opinion by opinion: Olelexander lutskevych, founder and CEO of CEX.IO
The Bitcoin market continued to show greater emotional elasticity than traditional stocks during the world’s shocks.
Some people in Wall Street found this “impressive” in the sale of “day of liberation” on April 2, but that optimism is not a flaw. It is a pattern that extends across digital assets.
Let’s take a closer look at passwords and stocks Fear and Greed Index dynamics. After Donald Trump announced tariffs in almost all countries, the stock F & G index fell from 19 to 3. In contrast, the Crypto F & G index decreased from 44 to 18 to 59%.
Of course, these indexes are not the same. CNN’s Stock F & G Index tracks traditional emotions through signals such as VIX volatility, safe demand and market width. Crypto F & G Index relies on price momentum, volume and social emotional metrics. Despite other inputs, we aim to measure the same thing: market sentiment.
If you look side by side during the macroscopic shock, the contrast is clear. When the huge wind changes coldly, stock investors generally strengthen panic and recover slower than encryption investors.
In May 2022, we offer an example. On May 4, the US Federal Reserve Bank raised interest rates from 0.5%to 1%, causing the fear of recession in encryption. Then Luna and USST collapsed from May 9 to May 13. However, the stock F & G index fell 82% (4) and Crypto F & G fell 62% (8).
Crypto has already been pressure and contributed to various bankruptcy in the industry, even though it was stronger due to the collapse of LUNA, but Crypto was less scared than the stock market. However, the encryption sentiment took time to rebound due to the bear market established at the time.
The unique optimism of encryption is not a defect but a strength
Some can call Crypto’s optimism or irrational. Actually, it is structural.
Encrypted volatility has re -exchange investors’ expectations. The 20% decrease in stocks is the bear market. Encryption can be a healthy correction. The size and frequency of price fluctuations have been adjusted to encrypted lovers to help the market shock better.
There are also cultural divisions. The stock market is built by institutions. It moves carefully and slowly. Encryption was born in a rebellion and grew up by sleeves, which is rapidly changing to a new story.
Nevertheless, Crypto’s optimism is not immune to erosion. When the institutional impact increases and the bitcoin continues to be related to the stock, the Wall Street fear is getting more and more blood. While the tariff is afraid, the emotional recovery timeline was almost the same in stocks and encryption.
Nevertheless, encryption optimism is structurally healthy.
Encryption
Protecting encryption optimism is two dominant and very different groups.
First -believers see the password as the future. In this group, BTC (Bitcoin) employees tend to consider this as a repository of value and hedge. For them, short -term volatility is only noise. This perspective allows them to be long -term holders who do not fall into change every day.
Recent: Dogecoin Traders predicts 180% Doge Price Rally when Bitcoin Gains continues.
Meanwhile, Altcoin believers get the power of rapid innovation. New protocols, stories and technologies continue to maintain this sector. Encryption strengthens the idea of re -creation and rebounding ability, but an ecosystem defined as exercise.
There is also a second group, mainly composed of recent arrivals. They see encryption as speculative betting. They tend to construct many short -term holders and respond more to the news.
When fear spreads, the second group rushes to the exit more often in the binary CDD of Bitcoin for the short -term holder (STH) than the long -term holder (LTH). This group is also more vulnerable to erosion of optimism.
But if the second group, like Bitcoin, which controls 65%of the BTC supply, is a small number of Loys, this macro -related fear that enters space will have only a limited short -term effect.
Beyond simple faith
The beliefs of bright future believers are not based on blind faith, but have a solid foundation. In the case of Bitcoin, the Foundation depends on a clear and predictable monetary philosophy that stands out during a firm and dedicated holder base, fixed supply and economic uncertainty. These are not speculative claims. They are the principle of trust over time.
Action also supported this optimism. In March to April, Bitcoin LTHS accumulated 300,000 BTCs while the market was embarrassed. Liquidity ends at $ 500 million in market depth of 1%, showing continuous trust and participation of market manufacturers and investors.
Meanwhile, macro indicators such as global liquidity have reached a new top point. Many bitcoin cycles, including the top of the PI cycle, are far from flickering the top signal, which is still confident that there may still be room for upward movement.
These are only several factors that argue with encryption optimism, and more will appear. The optimism of this space is built in because it is not temporary. Fear continues to work like a system that prepares a larger one while driving the headline. And so far, history has supported that view.
Opinion by opinion: Olelexander lutskevych, founder and CEO of CEX.IO.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.