Risk-on is a mood, not a direction
A popular belief in crypto: “when the market turns risk-on, prices keep rising.”
On Sep 18 at 16:04 UTC, a market-mood gauge turned risk-on. Does the label tell you where prices go next?
The data: a basket of coins over 430 days, 91 of them risk-on and 190 risk-off. On average, the week after a risk-on day went no better than the week after a risk-off day. Which of the two came out ahead switched between the first and the second half of the data.
The rule, set before the check, asks for at least 100 days of each mood in each half. With 91 risk-on days in all, there are too few to judge yet.
So far, the label says how the market feels, not where it goes next.
Would you still read risk-on as a green light?
