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Crypto Market Sentiment Slides Back into Fear
Source: Coinomedia Original Title: Crypto Market Sentiment Slides Back into Fear Original Link:
The crypto market started the week on a positive note, but the rally was short-lived. Market sentiment has slipped back into “Fear” as measured by the Fear and Greed Index (FGI), which fell to 27. This drop in confidence follows faster outflows from both Bitcoin and Ethereum ETFs, coupled with rising geopolitical uncertainties.
Bitcoin (BTC) is currently priced at $90,913, showing a 1% daily gain, while Ethereum (ETH) rose slightly to $3,114, gaining just 0.1%. Despite these positive movements, the broader market mood remains cautious, as reflected in the shifting sentiment.
ETF Outflows and Global Tensions Weigh on Confidence
One of the main drivers behind the renewed fear is the increased selling pressure from institutional investment products. Both BTC and ETH ETFs have seen faster-than-usual outflows, signaling potential loss of confidence from large investors. These outflows often trigger additional retail selling, adding further pressure on prices.
In addition to market-specific concerns, geopolitical developments have also played a role in unsettling investor sentiment. Renewed tensions in global regions have sparked a risk-off attitude across financial markets, including crypto. Investors are treading carefully, waiting for clearer signals before making significant moves.
Liquidations and Market Cap Show Underlying Volatility
The total crypto market cap currently stands at $3.19 trillion, showing resilience despite market jitters. However, liquidations have surged to $236 million in the past 24 hours, highlighting the ongoing volatility and cautious trading environment.
As fear takes hold again, it’s crucial for traders and investors to monitor both macroeconomic factors and on-chain data. While BTC and ETH prices are still holding above key levels, the short-term trend suggests that caution is warranted.