$BTC 🔴 The "Extreme Fear" Kills the Altcoin Season
The market starts the week with a clear and strong signal: sentiment has fallen back to "Extreme Fear".
Fear in the market is the enemy of Diversification. When panic is high, investors do not bet on risky Altcoins; they simply seek refuge in the largest-cap asset: Bitcoin.
Evidence of the Flight to Quality:
1. Bitcoin's dominance continues to rise (up to 58.4%), a sign that capital is flowing out of altcoins and into BTC, perceived as the safest refuge in the crypto ecosystem.
2. The "Altcoin Season" indicator from CoinMarketCap is at a depressing 19/100 (close to last week's low of 16/100). This underscores that altcoins are consistently underperforming compared to Bitcoin, something typical in extreme fear phases.
3. Open interest (OI) in Bitcoin futures is unchanged, while altcoins saw capital outflows. The only glimmer of speculative optimism is the increase in OI for DOGE, but this is often more of a high-risk bet than a structural confidence indicator.
✔️ Bitcoin's inability to hold above $94,300 after the Fed's cut, combined with bearish pressure from Wall Street, has frozen confidence. As long as sentiment remains in "Extreme Fear," capital will remain concentrated in BTC, and altcoins will continue to underperform.
Do you believe that Altcoins will only recover when extreme fear leaves the market?
1. YES, calm is essential for risk. 🧘
2. NO, only a Bitcoin rally will break the streak.
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