After prolonged downward pressure, Bitcoin and Ether have shown signs of recovery over recent days. Bitcoin (BTC) gained 1.51% to reach US$62,521, while Ether (ETH) rallied more sharply by 2.26% to US$1,760 - even briefly touching US$1,775 in intraday trading.
From 21-Month Lows
The rebound came shortly after Bitcoin dropped to its lowest level in 21 months, while Ether recorded a new year-to-date low. A key catalyst for the turnaround was the return of inflows into spot Bitcoin ETFs totaling US$221.7 million on July 2 - the largest single-day inflow since early May, which snapped a 10-day streak of consecutive outflows.
Extreme Fear, But Buyers Step In
Notably, this rebound occurred while market sentiment remained in “Extreme Fear” territory - with the Fear & Greed Index sitting at 11 out of 100, one of the lowest levels the indicator can reach. Typically, extreme fear triggers further panic selling. This time, however, some investors appear to view it as a buy-the-dip opportunity.
Mixed Signals, Not Clearly Bullish
Despite positive ETF inflow data and price rebounds, market analysts consider current conditions a “mixed” signal rather than clearly bullish or bearish. A primary concern is that persistently high leverage amid extreme fear makes the market potentially more vulnerable to sudden shocks rather than more stable.
What It Means for Investors
Rebounds following prolonged downturns often trigger instant optimism, but distinguishing between a “temporary bounce” and a “solid trend reversal” is crucial. With elevated leverage still lingering and sentiment far from recovering from the extreme fear zone, near-term two-way volatility remains highly likely. On-chain metrics, ETF flows, and market sentiment should be monitored together rather than viewed in isolation.
Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Crypto assets are highly volatile and carry high risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
