Opinion according to the opinion: Olelexander Lutkevoch, founder and general director of CEX.io
Bitcoin markets consistently show greater emotional resistance than established actions during many global shocks.
While some on Wall Street found this “impressive” during the sale of “Liberation Day” on April 2, such optimism is not a fault-it is a pattern extending to digital assets.
Let’s take a closer look at the dynamics of the index of fear and greed in cryptography and wrestling. After in April Donald Trump announced tariffs for almost all countries, the F&G index dropped From 19 to 3-POND 80% decrease and three-year lowest levels. While the Crypto F&G index rejected From 44 to 18 – a decrease by 59%.
Of course, these indexes are not identical. Stock index F&G CNN tracks established moods through signals such as VIX variability, protected demand and market width. The Crypto F&G index is based on the price rates of price, size and social moods. Despite the different input data, both are aimed at measuring the same: market emotions.
Looking next to each other during macro shocks, the contrast of mood becomes obvious. When macro winds change chilly, stock investors usually panic more and recover slower than cryptocurrency investors.
May 2022 offers an illustrative example. On May 4, the US Federal Reserve raised interest rates from 0.5% to 1%, which caused fear that it spilled on the crypto. Then, from May 9 to May 13, Luna and mouth fell. However, the F&G reserve indicator dropped by 82% (up to 4), while Crypto F&G dropped by 62% (up to 8).
Even while the crypto was already under pressure and struck more strongly on the collapse of Luna, which contributed to several bankruptcies in the industry, Crypto remained less terrified than on the stock exchange. However, cryptocurrency moods took more time due to the established bears at that time.
Congenital cryptographic optimism is a strength, not a disadvantage
Some may call naive or irrational cryptographic optimism. In fact, it is structural.
Volatility from cryptocurrency expectations of investors. 20% of the payment of shares is bears. In Crypto it can be a fit correction. The scale and frequency of swings prices have determined cryptocurrency enthusiasts to better withstand market shocks.
There is also a cultural division. The stock market is built by institutions. It’s cautious and ponderous. Crypto was born of rebellion and raised by retail, which quickly switches to novel narratives.
Despite this, cryptographic optimism is not resistant to erosion. As the institutional influence increases, and Bitcoin still correlates with actions, fears with Wall Street are increasingly bleeding in the sector. During tariff fear, the mood recovery schedule was almost identical in the field of wrestling and cryptography – a possible sign of erosion of optimism.
Despite this, cryptographic optimism remains structurally fit.
Cryptographic optimism shield
What protects cryptographic optimism is the presence of two dominant and very different groups.
The first – believers – perceive crypto as the future. As part of this group, Bitcoin (BTC) users tend to perceive it as a warehouse for values and security. For them, brief -term variability is only noise, distracting attention from a long -term vision. This perspective leads them to becoming long -term owners, unsatisfied with daily fluctuations.
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Meanwhile, Believers Altcoin derive strength from quick innovations. Fresh protocols, narratives and technologies keep the sector in constant motion. This ability to discover – and reflection – strengthens the idea that Crypto is an ecosystem defined by shoots, not stagnation.
There is also a second group, which consists primarily of recent arrivals. They see crypto more as a speculative plant. They consist of many brief -term owners and are more reactive to messages.
When fear spreads, the second group throws themselves primarily on exits, as the more recurrent peaks in the binary CDD Bitcoin for brief -term owners show (Sths) than long -term owners (LTH). This group is also more susceptible to the erosion of optimism.
However, if this second group is a minority, like in Bitcoin, where they control LTH 65% According to BTC supply, then all these fears related to macro, that creeping into space would only have a constrained, brief -term effect.
Apart from a uncomplicated conviction
The conviction of believers in a brilliant future is not based on blind faith, but has a solid foundation. In the case of Bitcoin, this foundation rests with the company, the involved owners’ database, constant supply and a clear, predictable monetary philosophy, which stands out during periods of economic uncertainty. These are not speculative claims – these are the rules that have gained credibility over time.
Actions also supported this optimism. While the markets panicked the tariffs in March-April, Bitcoin Lth gathered over 300,000 BTC. The liquidity has strengthened, and the 1% market depth ended with a quarter of $ 500 million, which indicates further trust and participation of market creators and investors.
Meanwhile, macro indicators, such as global liquidity, have achieved novel ups. Many Bitcoin cycle indicators, including the peak of the PI cycle, are far from the flickering of the upper signal, fueling the assurance that there may still be a place for upward movement.
These are just some of the factors that drive cryptographic optimism and more will appear. Because optimism in this space is not short-lived – it is embedded. While fear drives the headers, Crypto still works like a system preparing for something bigger. And so far history has supported this view.
Opinion according to the opinion: Olelexander Lutkevoch, founder and general director of CEX.io.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
