Investors Hold Breath Despite Crypto Markets Recoup From Sell-off

TL;DR

• Volatility has drastically increased i recent days as BTC prices hit the lowest level in nearly six months on Monday, and ETH traded below $2,500. The decline amidst a backdrop of global risk-off sentiment and growing fears of slowing economic growth worldwide.

• Despite the initial rebound in equity, the border crypto market recovered partially from the Monday sell-off as the Crypto Fear & Greed Index remains low, indicating a fear state..

• Annualized staking yield of ETH surged as US10Y dipped, sparking renewed interest in locking up ETH to earn rewards amid market uncertainties.

What Is Happening?

Risk appetite has become noticeably lower among traders and investors this week as recent economic data weakness triggered a large scale of unwinds across different asset classes, including crypto. The Volatility Index (VIX) reached over 50 on Monday in the U.S. trading session, the highest level since Covid, before stabilizing in the 22 to 27 area.