If trader sentiment is any guide, cryptocurrencies could snap back or at least stop selling off after one of their worst quarters in history.
The crypto Fear and Greed Index climbed to 19, marking the highest point in two months, according to Arcane Research.
The measure is pushing toward the “fear” area after sitting comfortably in the “extreme fear” level, the firm’s analysts said in a note.
“The sentiment in the crypto market has been depressed for several months, but we’re seeing a slight improvement this week,” they wrote.
Bitcoin briefly broke above the $20,000 level Tuesday before coming back down.
The world’s largest digital token plummeted by almost 60% in the second quarter as hawkish central banks and a string of high-profile crypto blowups hammered sentiment.
In traditional markets, the Fear and Greed Index measures investor sentiment based on factors including volatility momentum and demand.