Investor sentiment has turned sharply bearish as $230 billion evaporated from the global crypto market in just 24 hours, dragging the Fear & Greed Index down to its lowest level since April.
Crypto Fear Index Plunges to 28
According to CoinMarketCap, the Crypto Fear & Greed Index fell to 28 on Friday, signaling a steep shift from “neutral” to “fear.” The indicator, which measures volatility, momentum, and social sentiment, is now hovering close to the “extreme fear” zone.
The total crypto market capitalization dropped by nearly 6%, sliding from $3.78 trillion to $3.54 trillion, wiping out roughly $230 billion in value — one of the largest one-day declines in months.
The traditional stock market fear index also reflected rising anxiety, plunging to 22 (extreme fear) after U.S. equities closed lower on Thursday amid credit market turmoil, regional bank stress, and U.S.-China trade tensions.
“Investors are showing signs of panic, with risk appetite shrinking sharply across both crypto and equities,” one analyst told Cointelegraph.
Bitcoin, Ethereum Lead Market Losses
Top cryptocurrencies saw sharp sell-offs across the board:
- Bitcoin (BTC) fell 6% to around $105,000.
- Ether (ETH) dropped 8% to $3,700.
- BNB (BNB) plunged 12% to $1,071, marking one of the worst performances among major coins.
- Chainlink (LINK) lost 11%, and Cardano (ADA) slipped 9%.
- Solana (SOL) and XRP (XRP) each dropped over 7%, erasing gains from earlier in October.
On average, the largest non-stablecoin assets declined between 8% and 9% in 24 hours.
Liquidations Cool Down — But Fear Persists
Unlike last week’s massive $20 billion liquidation wave, the recent downturn triggered $556 million in liquidations, according to CoinGlass.
- Long positions: $451 million liquidated.
- Short positions: $105 million liquidated.
While smaller in scale, analysts warn that continued ETF outflows and geopolitical uncertainty could prolong market weakness.
NFTs, Memecoins, and ETFs Take a Hit
The sell-off extended beyond major tokens:
- Memecoins dropped 33% in 24 hours, with total trading volumes near $10 billion.
- The NFT market cap fell below $5 billion, retracing gains from last week’s rebound.
- Spot Bitcoin ETFs saw $536 million in outflows, while Ether ETFs lost $56 million in net redemptions.
Analysts suggest that markets may remain unstable until clearer macroeconomic signals — such as inflation data and central bank commentary — restore investor confidence.
“The market wants to stabilize,” said one strategist, “but uncertainty around trade policy and monetary tightening continues to drive fear.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.