Bitcoin dominates with 60.9% as altcoins plummet

The Fear and Greed Index hits 35 points, signaling a possible undervaluation of the market and buying opportunities in alternative cryptocurrencies.

The crypto market is experiencing a time of uncertainty. With the Fear and Greed Index at 35 points, investors are showing caution, while Bitcoin consolidates its dominance with 60.9% of the market, while altcoins, for their part, lost $26.35 billion in February. This generated concern but also opportunities for purchases at historically low prices.

The Fear and Greed Index, which currently reads 35 points, suggests that the market could be undervalued / Coinmarketcap

Bitcoin: The safe haven in times of fear

Bitcoin's dominance (60.9%) reflects its role as the preferred asset in a context of uncertainty with altcoins falling. Investors, fearful of factors such as government regulations and macroeconomic uncertainty, are choosing to take refuge in the leading cryptocurrency. This behavior is similar to that of traditional assets like gold, which are often in demand during periods of volatility.

Coinmarketcap's Fear and Greed Index, which currently stands at 35 points, suggests that the market could be undervalued, which represents an opportunity for long-term investors. Historically, similar levels of fear have preceded strong recoveries, such as the one following the crypto winter of 2018-2019.

Altcoins in Free Fall: Opportunity or Risk?

While Bitcoin remains strong, altcoins face a critical situation. So far in February, the crypto market has lost $33.23 billion, of which $26.35 billion corresponds to alternative cryptocurrencies. This collapse is due, in part, to the fear that interest rates will remain high or even increase. High rates especially affect more volatile assets like altcoins.

However, this drop could be pushing altcoins into oversold territory, opening the door to buying opportunities at very low prices. Projects like Ethereum, which currently has a 10.4% dominance, could benefit from its central role in the DeFi and NFT ecosystem, especially if scalability issues are resolved and transaction fees are reduced.

External factors impacting the market

Regulatory uncertainty in the United States, coupled with the trade war driven by former President Donald Trump, is generating a climate of distrust in the market. Investors are awaiting clear decisions on crypto regulations, which could define the direction of the market in the coming months.

In addition, central bank policies, such as interest rates and inflation, remain key factors influencing market sentiment. In this context, Bitcoin is consolidating as a safe haven, while altcoins face greater volatility.

Is It Time to Buy?

The crypto market is in a consolidation phase, with Bitcoin leading the way and altcoins facing a strong correction. The Fear and Greed Index at 35 points suggests that the market could be undervalued, which represents an opportunity for investors willing to take risks.

While Bitcoin remains king, altcoins could be offering unique opportunities for those looking to buy at low prices. However, it is crucial to monitor external factors such as regulations and macroeconomic policies, which could define the direction of the market in the short and medium term.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrencies are volatile assets; invest with caution and do your own research before making decisions.