Opinion by: Oleksandr Lutskevych, founder and CEO of CEX.io
Bitcoin markets have consistently shown greater emotional resilience than traditional stocks under several global shocks.
While some on Wall Street found this “impressive” under “Liberation Day” sales on April 2, such optimism is not a mistake is a pattern that spans digital assets.
Let’s take a closer look at fear and greed index dynamics in crypto and stocks. After Donald Trump announced tariffs for almost all countries in April, the April-F & G index dropped from 19 to 3-a more than 80% jump and a three-year-old low. In contrast, the Crypto F&G index fell from 44 to 18 – a 59%decrease.
Of course, these indices are not identical. CNN’s stock F&G index traces traditional mood through signals such as VIX volatility, demand for the safe port and the breadth of the market. The Crypto F&G index is dependent on prismomentum, volume and social mood meters. Despite different inputs, both aim to measure the same thing: Market feelings.
When seen side by side under macrostok, the contrast in the mood becomes obvious. When macro -mind becomes cold, the stocks typically panic, typically panic and get slower than cryptoinvestors.
May 2022 offers an illustrative example. On May 4, the US Federal Reserve raised interest rates from 0.5% to 1%, which expires recession fears wasting in crypto. Then on May 9 to May 13, Luna and Ust collapsed. Still, stock -F & g index fell 82% (to 4), while Krypto F&G fell 62% (to 8).
Even while Crypto was already under pressure and hit harder by Luna’s collapse, which contributed to more bankruptcies in the industry, Crypto remained less frightened than the stock market. Crypto mood took longer to rebound because of the established bear market at that time.
Cryptos inherent optimism is a strength not a mistake
Some may call Crypto’s optimism naive or irrational. In reality, it’s structural.
The volatility resident in crypto calibrated investor expectations. A 20% move in shares is a bear market. In crypto it can be a healthy correction. The extent and frequency of price fluctuations conditioned crypto enthusiasts to better resist market shock.
There is also a cultural gorge. The stock market is built occasionally and for institutions. It is gently and slowly moving. Crypto was born from rebellion and bred by retail, which quickly switches to new stories.
Crypto’s optimism is still not immune to erosion. As institutional influence grows and Bitcoin continues to correlate with stocks, Wall Street is increasingly bleeding into the sector. During the tariff frightening, mood recovery time lines were almost identical across stocks and crypto – a possible sign of optimism erosion.
Still, cryptooptimism remains structurally healthy.
The shield of cryptooptimism
What protects cryptooptimism is the presence of two dominant and very different groups.
The first – the believers – see crypto as the future. Within this group, Bitcoin (BTC) has adopted a tendency to see it as a store of value and hedge. For them, short -term volatility is just noise, a distraction from the long -term vision. This perspective leads them to becoming long -term holders, inconsistent with daily fluctuations.
Recent: Dogecoin Traders predicts 180% DOGE PRICE Rally if Bitcoin wins continues
Altcoin -believers, meanwhile, draw strength from rapid innovation. New protocols, tales and technologies keep the sector in constant motion. This ability to reinvent – and rebound – reinforces the idea that crypto is an ecosystem defined by momentum, not stagnation.
There is also another group that consists primarily of recent arrivals. They see crypto more as a speculative effort. They make up many short -term holders and tend to be more reactive to news.
When fear spreads, this other group rushes primarily by outputs, as shown with more frequent peaks in Bitcoin’s binary CDD for short -lived holders (sths) than long -term holders (LTHS). This group is also more susceptible to erosion of optimism.
However, if this other group is minority, as in Bitcoin, where LTHS controls over 65% of BTC’s supply, then all of these macro -related fears of creeping into space would only have a limited, short -term effect.
In addition to simple faith
The beliefs of the believers in a bright future are not based on blind faith, but have a solid foundation. In Bitcoin’s case, this foundation rests on a firm, committed proprietor base, a solid supply and a clear, predictable monetary philosophy that stands out during periods of financial uncertainty. These are not speculative allegations – they are principles that have gained credibility over time.
Actions also supported this optimism. While the markets panicked over customs rates in March-April, Bitcoin LTHS accumulated over 300,000 BTC. Liquidity strengthened by 1% market depth that ended Q1 to $ 500 million, which indicates continued confidence and participation from market manufacturers and investors.
Meanwhile, macrometers such as global liquidity reached new heights. Several Bitcoin cycle indicators, including PI cyclusop, are far from flashing a top signal, which is burning insurance that there could still be room for upward movement.
These are only a few of the factors that burn cryptooptimism and more will appear. Because optimism in this room is not temporary – it is embedded. While fear drives headlines, Crypto continues to act as a system preparing for something bigger. And so far, the story supports this view.
Opinion by: Oleksandr Lutskevych, founder and CEO of CEX.IO.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and statements expressed here are the author’s alone and does not necessarily reflect or represent the views and opinions from Cointelegraph.