Crypto ETFs Bleed $684M Amid Market Fear
Crypto ETFs lost $684M this week as market sentiment turned fearful. BTC and ETH prices slip further.
- BTC and ETH ETFs see $684M in weekly outflows
- Market sentiment drops to “Fear” with FGI at 44
- Crypto market cap slips to $4.13T amid sell-off
The crypto market is once again under pressure after a short-lived recovery. Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs) recorded combined outflows of $684 million this week, raising concerns among investors. This sizable withdrawal of capital from institutional vehicles signals a lack of confidence, despite the broader adoption of crypto investment products in recent months.
The outflows come at a time when Bitcoin is down 0.5% to $112,574 and Ethereum has dropped 0.9% to $4,174. The overall market capitalization now stands at $4.13 trillion, reflecting a broader pullback across digital assets.
Fear Takes Hold: FGI Drops to 44
Investor sentiment has shifted toward caution, as indicated by the Fear & Greed Index (FGI), which fell to 44, entering the “Fear” zone. This metric tracks market emotions using factors such as volatility, volume, and social media trends.
The rising fear could be driven by the recent volatility, coupled with high liquidations totaling $287 million across major exchanges. These forced sell-offs suggest that overleveraged positions are being wiped out, adding further downward pressure on prices.
What’s Next for the Market?
While outflows from ETFs might seem like a bearish signal, some analysts view this as a healthy correction after months of gains. However, until market sentiment recovers and ETF inflows resume, price stability may remain elusive.
Short-term traders should be cautious as volatility remains high. Long-term investors, on the other hand, might find these dips as potential entry points—especially if institutional confidence returns in the coming weeks.
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