Crypto Market Experiences Massive Decline as $230 Billion Disappears
Investor confidence declines sharply, leading to a significant drop in cryptocurrency values and a bearish market sentiment.
The crypto market’s Fear & Greed Index has shifted dramatically towards fear this week, dropping to a level of 28, reflecting the steep market sell-off that resulted in a loss of over $230 billion in just one day.
On Friday, CoinMarketCap’s Crypto Fear & Greed Index registered a low of 28, indicative of the fear category, closely approaching extreme fear.
Data indicates that the total market capitalization for cryptocurrencies crashed to about $3.54 trillion, marking a 6% decrease from the previous day’s $3.78 trillion. This significant decline constitutes one of the most substantial single-day drops observed in several months.
The Fear & Greed Index for traditional assets also saw a reduction, hitting 22 as investor anxiety spiked due to lower closures in US stock markets.
Crypto Fear & Greed Index chart. Source: CoinMarketCap
Major Cryptocurrencies Suffer Losses
Leading cryptocurrencies have witnessed a continuation of declines over the past 24 hours as overall market corrections deepen.
- Bitcoin (BTC) has faced a nearly 6% drop to approximately $105,000.
- Ether (ETH) has slid almost 8%, landing around $3,700.
Among larger altcoins, BNB has seen the largest drop of nearly 12%, with Chainlink (LINK) following closely at an 11% decrease. Cardano (ADA) has also recorded a decline of 9%.
Other significant cryptocurrencies like Solana (SOL) and XRP have both fallen by over 7%.
On average, major non-stablecoin cryptocurrencies have decreased by about 8%–9% over the last 24 hours.
Crypto market cap and volume. Source: CoinMarketCap
Despite significant liquidations amounting to $20 billion from last week’s market crash, this week’s activity is notably reduced, with a mere $556 million worth of leveraged positions eliminated across exchanges.
Total liquidation amounts per exchange. Source: CoinGlass
Impact on NFTs, Memecoins, and ETFs
In addition to top cryptocurrencies, other sectors, including memecoins, NFTs, and ETFs, have also felt the impact of the downturn.
- Memecoins witnessed a 33% drop in 24 hours.
- The NFT sector has reversed gains and fallen below a valuation of $5 billion.
On the ETF front, spot Bitcoin and Ether products saw significant outflows, with Bitcoin ETFs recording over $536 million in withdrawals.
