Crypto Market Cap Drops 5.5% Amid $2B ETF Outflows
Crypto market cap falls 5.5% this month as Bitcoin and Ethereum ETFs see $2B in outflows, signaling growing fear among investors.
- Crypto market cap drops to $3.75T after a short-lived bounce
- $2B pulled from Bitcoin and Ethereum ETFs in one week
- Fear level rises, with FGI dipping to 26
After a brief recovery, the crypto market is once again facing downward pressure. Over the past month, the total cryptocurrency market capitalization has dropped by 5.5%, falling to $3.75 trillion. This decline comes alongside massive outflows from crypto ETFs, signaling a shift in investor sentiment.
The two major assets, Bitcoin (BTC) and Ethereum (ETH), both recorded minor losses in the past 24 hours. Bitcoin is currently trading at $105,202 (-1%), while Ethereum sits at $3,560 (-1.4%).
ETF Outflows Highlight Weak Market Confidence
In the past week alone, $2 billion has been withdrawn from Bitcoin and Ethereum exchange-traded funds (ETFs). These outflows suggest institutional investors are taking profits or reducing exposure, possibly due to growing macroeconomic concerns or technical correction expectations.
These ETF movements have played a significant role in dragging down the overall crypto market cap, which had shown signs of recovery earlier. The withdrawals may also reflect a wait-and-see approach as markets anticipate further regulatory clarity or economic signals.
Fear Rises in the Market
The Fear and Greed Index (FGI) has dropped to 26, firmly in the “Fear” zone. This reading highlights increasing caution among traders and investors. Fearful sentiment often leads to more conservative strategies, which could limit buying momentum and continue to apply downward pressure.
Adding to the tension, recent liquidations have totaled $366 million, reflecting the volatility in leveraged positions and the cautious atmosphere dominating the market.
Despite these setbacks, many analysts suggest the downturn may present buying opportunities for long-term investors — but timing and careful research will be critical in the weeks ahead.
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