Current market sentiment is Bullish (CMC Fear & Greed Index: 70/100). Key highlights:

Sentiment Strength – Greed (70/100), up 3 points in 24h, signaling growing risk appetite

ETH ETF Momentum – $296.6M daily inflows vs BTC ETF outflows, driving altcoin rotation

Leverage Reset – Open interest down 22.76% in 24h, reducing systemic risk

Deep Dive

1. Sentiment Gauge Strengthens

Overview: The CMC Fear & Greed Index rose to 70/100 (Greed) as of July 23, up from 67 yesterday and 68 last week. This marks a 89% surge from Fear (37/100) levels seen 30 days ago (View CMC F&G).

What this means: This is bullish because sustained Greed readings typically correlate with capital inflows, though prolonged extremes (>75) often precede corrections.

2. Ethereum ETF Rotation

Overview: Ethereum ETFs saw $296.6M inflows on July 22 – their 12th consecutive green day – while Bitcoin ETFs bled $131.4M. ETH social sentiment (7.94/10) dominates discussions, with posts like: "ETH Flips the Flow 🚀... Is the tide turning?"

— @SoSoValueCrypto (887K followers)

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What this means: This is bullish for alts as capital rotates from BTC (60.02% dominance, down from 64.94% monthly) to ETH and smaller projects.

3. Derivatives Market Cooling

Overview: Total crypto open interest fell 22.76% to $655B in 24h, while funding rates rose to +0.0137% (+18.24% daily). BTC liquidations dropped 57.67% to $44.28M.

What this means: This is neutral – reduced leverage lowers liquidation cascade risks, but rising funding rates show persistent long demand.