- Crypto market cap dips to $3.42T with $619M in liquidations
- Fear & Greed Index hits 10, lowest since 2022
- Traders reduce risk amid delayed U.S. economic data
The global crypto market cap drop over the weekend sent ripples across the market. Total capitalization now stands at $3.42 trillion, falling below the $3.5 trillion mark. This downturn has been accompanied by $619 million in liquidations, indicating high volatility and aggressive risk-off behavior among traders.
Bitcoin ($ BTC ) and Ethereum ($ ETH ), the market’s two largest assets, both recorded minor declines. BTC dropped 0.65% to $95,329, while ETH slid 0.88% to $3,183. These shifts, although not massive individually, reflect a broader sentiment of caution and market fragility.
Fear & Greed Index Hits Lowest Since 2022
One of the most striking indicators over the weekend was the Fear & Greed Index (FGI), which plunged to 10, signaling Extreme Fear. This is the lowest level seen since 2022, a year marked by major market downturns. The FGI is now slightly up at 14 but still in extreme fear territory.
This dramatic drop in sentiment suggests that investors are bracing for further volatility. Such fear-driven environments often lead to either panic selling or a wait-and-watch approach from market participants.
Traders De-Risk Amid Delayed U.S. Data
Adding to the uncertainty, key U.S. economic data releases were postponed, leaving markets without crucial insights into inflation and interest rate trajectories. In such an environment, crypto traders tend to move cautiously, often scaling back positions to manage exposure.
The lack of macroeconomic clarity, combined with existing fears in the digital asset space, is creating a highly sensitive environment. If sentiment doesn’t stabilize soon, we could see further downward pressure on prices and market cap in the coming days.
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