The cryptocurrency market has not recovered from the bear market that began after the largest liquidation event in its history on 10th October 2025, which wiped out over $19 billion. Since then, the market has experienced significant volatility, currently sitting at a turning point after Bitcoin (BTC) cleared the $65,000 resistance. Total market capitalization has shed roughly $85 billion since 21st July, with the Fear and Greed Index reading 35, indicating investor fear. Despite this, the Altcoin Season Index has shown a divergence, climbing from 51 to 53 even as altcoin market cap fell.
The crypto market shed roughly $85 billion since 21st July, a decline that may be evidence of bearish positioning, profit-taking, or a mix of both. The drop landed right after the market set a fresh high, hinting towards investors probably locking in their money.
At the time of writing, the Fear and Greed Index showed that investors are simply fearful with a reading of 35. This alluded to capital sitting largely on the sidelines, despite some quiet accumulation.
An interesting dynamic might suggest that investors are simply waiting on the sidelines for calm to settle in. The Altcoin Season Index, which tracks whether altcoins are leaning toward a bull run or bear dominance, was trending upwards even as the altcoin market capitalization slid.
On 23rd July, the Altcoin Season Index sat at 51 with altcoin market capitalization at $923.67 billion. By 25th July, it had climbed to 53 while altcoin capitalization fell to $900.46 billion, pointing to lingering bull interest.
Crypto market sentiment printed its latest reading at 1.78, down from an all-time high of 3.23 set on 22nd July. This implied that investors have stayed bullish, though they may be far less optimistic than they were days ago.
Over the last 24 hours, barely any stablecoin inflows have reached the market, with supply holding near flat. Across the past week, a slight uptick pushed roughly $824.5 million into the market, a figure minimal against the outflows absorbed over the same week. Until a major inflow arrives, likely north of the $1 billion-mark, the market is likely to stay muted.
