China’s RWA Ban Triggers Market Fear
Crypto market dips as China bans RWA tokenization; Bitcoin and Ethereum ETFs see no new inflows for 9 days.
- China bans RWA tokenization, sparking investor concerns
- Bitcoin and Ethereum ETFs experience prolonged outflow pause
- Market sentiment drops to extreme fear with $208M liquidated
The crypto market is feeling the pressure after China’s recent crackdown on Real World Asset (RWA) tokenization, a move that’s igniting uncertainty among global investors. The effects are already visible: top cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are slipping, with prices currently down by -1.3% and -0.4% respectively.
RWA tokenization, a process of representing physical assets like real estate or bonds on blockchain, has been gaining traction globally. However, China’s decision to ban this financial innovation has raised alarms, especially given its potential to limit future institutional participation in crypto markets.
ETF Inflows Stall as Fear Takes Over
Adding to the concern is the persistent stagnation in spot ETF inflows. Both Bitcoin and Ethereum ETFs have recorded no net inflows for nine consecutive days. This unusual silence in ETF activity reflects cautious behavior from both retail and institutional investors, who are waiting for clearer market signals before committing fresh capital.
The Fear and Greed Index (FGI) has plunged to 22, firmly placing the market in the “Extreme Fear” zone. This sentiment drop indicates that traders are bracing for further volatility and possible downside.
Market Cap Drops and Liquidations Spike
The total crypto market capitalization now sits at $3.26 trillion, reflecting the pullback in investor enthusiasm. Meanwhile, over $208 million in liquidations were recorded across crypto exchanges, underlining the increasing risk-off mood and high leverage exposure among traders.
As regulatory developments like China’s RWA tokenization ban continue to unfold, the global crypto community remains on high alert. Market participants will be watching closely for any signs of reversal in ETF flows or a shift in sentiment that could stabilize prices moving forward.
Read Also :
- Malaysia’s Crown Prince to Launch Ringgit-Backed Stablecoin
- China’s RWA Ban Triggers Market Fear
- Hong Kong Plans Crypto Tax Info Sharing by 2029
- Arkham Tracks Over 53% of Zcash Transactions
- Binance Leads Bitcoin Trading with 35.4% Market Share
