Crypto Pulls Back from Recent Highs as Sentiment Index Hits 'Extreme Greed'

The crypto market has pulled back from its recent highs, but some analysts see this as a natural correction rather than a cause for concern.

According to Investing.com, the total market capitalization is currently at $2.86 trillion, which is 3.7% below last Wednesday's peak of $2.95 trillion.

Despite the pullback, some cryptocurrencies are still rising, with top gainers including BTC (+18.1%), ETH (+9.7%), and SOL (+3.5%).

The sentiment index remains at 74, which is on the verge of entering the 'extreme greed' zone.

JPMorgan estimates that the average cost basis for mining 1 BTC is $85,000, and if Bitcoin fails to rise above this level again, it could put pressure on miners and increase the risk of forced sales.