currencyjournals — Needham & Firm says its proprietary Cryptocurrency Euphoria Needham Diagram (CEND) has reached its highest stage since its inception, with market sentiment towards cryptocurrencies “presently very excessive.” He stated it was a sign that he was approaching “excessive euphoria.”
The CEND index, which tracks numerous indicators associated to the crypto market cycle, hit a worth of 64 this week, considerably up from 55 in December 2024, however nonetheless beneath its October 2021 peak of 82. There may be.
Needham’s evaluation contains six basic indicators that measure investor sentiment throughout the retail, crypto-native, and institutional domains, in addition to market value-to-realized worth (MVRV) Z-score and dominance. Features a “Danger On” indicator.
These indicators goal to grasp the extent of concern of escape (FOMO) and the allocation of capital to riskier segments of the crypto world. Needham stated the present CEND numbers are an indication of rising euphoria, which traditionally coincides with market highs.
“This week, CEND reached its highest stage because the index started publishing,” the corporate stated. “Nearly each basic indicator we analyze to trace cryptocurrency cycles has risen since President Trump took workplace.”
The report notes that eight out of the ten most downloaded monetary apps are associated to cryptocurrencies, indicating a rising curiosity in retail. Nevertheless, the rankings of Coinbase (NASDAQ:) and Robinhood (NASDAQ:) apps have been declining since December 2024, whereas new competing apps are gaining momentum.
Bitcoin MVRV Z-score, a metric used to evaluate whether or not Bitcoin is overvalued or undervalued, continues to be rising, suggesting a lot of market members are profiting I am doing it.
Bitcoin additionally has a robust lead, which Needham interprets as an indication of the early phases of a bull market, with traders not but allocating an excessive amount of to riskier altcoins. On-chain leverage has elevated since December, indicating elevated risk-taking and pleasure amongst crypto natives.
Moreover, search curiosity in “crypto” on Google (NASDAQ:) has surged to its highest stage since 2021, with a notable enhance following former President Trump’s meme coin announcement.
Lastly, regardless of a extra bearish outlook for Coinbase and important bullish sentiment for Bitcoin miners, the Road Consensus for crypto-related shares has proven important good points, with an total enhance within the “Road Purchase Consensus.” did.
Needham analysts stated the development “demonstrates rising institutional and sell-side pleasure about cryptocurrencies.”
