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September 12, 2024
Crypto
Risk Sentiment
Bitcoin

Crypto & Risk Sentiment

Explore how the cryptocurrency market often acts as a barometer for overall investor appetite for risk.

Digital network with glowing Bitcoin symbol.

As one of the most speculative asset classes, the cryptocurrency market is a useful gauge of broad market risk sentiment. When investors feel confident and have a strong appetite for risk (a 'risk-on' environment), money often flows into crypto. Conversely, in a fearful 'risk-off' environment, assets like Bitcoin can see significant sell-offs as investors move to safer assets.