The optimism in Crypto Assets is not just hype, but a structural characteristic.

Source: Cointelegraph Original text: "The optimism in cryptocurrency is not just hype, but a structural characteristic."

The opinion comes from Oleksandr Lutskevych, founder and CEO of CEX.io.

The Bitcoin market has consistently shown stronger psychological resilience than traditional stock markets amid multiple global shocks. Although some on Wall Street expressed being "impressed" during the sell-off on "liberation day," this optimism is not coincidental — it is a pattern in the digital asset space.

Let's take a closer look at the dynamics of the Fear & Greed Index in the cryptocurrency and stock markets. After Donald Trump announced tariffs on almost all countries in April, the stock market Fear & Greed Index plummeted from 19 to 3, a drop of over 80%, reaching a three-year low. In contrast, the cryptocurrency Fear & Greed Index fell from 44 to 18, a decline of 59%.

Of course, these two indices are not entirely the same. CNN's Fear and Greed Index tracks traditional market sentiment through signals such as VIX volatility, risk appetite, and market breadth. In contrast, the Cryptocurrency Fear and Greed Index relies on price momentum, trading volume, and social sentiment indicators. Despite the different input data, both aim to measure the same thing: market sentiment.

During macro shocks, the emotional contrast between the two becomes apparent when observed side by side. When the macro environment cools down, stock market investors typically become more panicked and recover more slowly than cryptocurrency investors.

A typical example was provided in May 2022. On May 4, the Federal Reserve raised interest rates from 0.5% to 1%, raising concerns about an economic recession, which also affected the cryptocurrency market. Subsequently, from May 9 to 13, LUNA and UST collapsed. However, the stock market fear and greed index fell by 82% (to 4), while the cryptocurrency fear and greed index fell by 62% (to 8).

Despite the pressure the cryptocurrency market was under at the time, and the greater blow from the LUNA crash—which led to the bankruptcy of several companies in the industry—the level of panic in the cryptocurrency market was still lower than that in the stock market. However, since it was already in a bear market at that time, the recovery time for sentiment in the cryptocurrency market was longer.

Some may think that the optimism surrounding cryptocurrency is naive or irrational. But in reality, it is structural.

The inherent volatility of cryptocurrencies recalibrates investors' expectations. In the stock market, a 20% pullback is considered a bear market. In the cryptocurrency market, this may just be a healthy correction. The scale and frequency of price fluctuations allow cryptocurrency enthusiasts to better withstand market shocks.

In addition, there are cultural differences. The stock market is built by institutions for institutions, cautious and slow to act. Cryptocurrency, on the other hand, was born from rebellion and is driven by retail investors, who quickly shift to new narratives.

Nevertheless, the optimism surrounding cryptocurrencies is not entirely immune to erosion. As institutional influence grows and the correlation between Bitcoin and the stock market continues to rise, Wall Street's panic sentiment is increasingly seeping into the cryptocurrency space. During the tariff panic, the recovery time for sentiment in the stock market and cryptocurrencies was almost identical, which could be a sign of optimism being eroded.

Even so, the optimism surrounding cryptocurrencies remains structurally strong.

The optimism surrounding cryptocurrencies is protected by two dominant and distinctly different groups.

The first category is "believers," who see cryptocurrency as the future. Within this group, Bitcoin (BTC) adopters tend to view it as a store of value and a hedge. For them, short-term fluctuations are merely noise, interfering with their long-term vision. This perspective makes them long-term holders, unaffected by daily volatility.

At the same time, the followers of altcoins draw strength from rapid innovation. New protocols, narratives, and technologies keep the field in a state of continuous movement. The ability to self-reinvent and rebound reinforces the idea that cryptocurrency is an ecosystem defined by momentum rather than stagnation.

There is also a second group, mainly composed of recent entrants. They view cryptocurrency more as a speculative bet. This group includes many short-term holders who are more sensitive to news.

When panic spreads, this group often evacuates first, as the Binary CDD indicator for short-term holders (STHs) shows more frequent peaks than that for long-term holders (LTHs). This group is also more susceptible to the erosion of optimistic sentiment.

However, if this group is a minority, as in the Bitcoin market where long-term holders control over 65% of the BTC supply, then the impact of these macro-related panic sentiments on the market will be limited to the short term.

The believers' faith in a bright future is not based on blind faith but is built on a solid foundation. In the case of Bitcoin, this foundation is established on a steadfast community of holders, a fixed supply, and a clear, predictable monetary philosophy that is particularly prominent during times of economic uncertainty. These are not speculative claims but principles that have gained credibility over time.

The actions also supported this optimistic sentiment. From March to April, when the market panicked due to tariff issues, long-term holders of Bitcoin accumulated over 300,000 BTC. Liquidity improved, with 1% market depth reaching $500 million at the end of the first quarter, indicating that market makers and investors continued to maintain confidence and participation.

At the same time, global liquidity and other macro indicators have reached new highs. Several Bitcoin cycle indicators, including the Pi Cycle Top, have yet to signal a peak, which bolsters confidence that the market still has room to rise.

These are just a few factors driving the optimistic sentiment in cryptocurrency, and more factors will emerge in the future. This optimism is not temporary—it is embedded. Despite panic dominating the headlines, the cryptocurrency market continues to operate like a system preparing for a larger goal. And so far, history supports this view.

The viewpoint comes from Oleksandr Lutskevych, the founder and CEO of CEX.io.

This article is for general informational purposes only and should not be construed as legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.