The global cryptocurrency market faced a sharp downturn this week, with investor confidence sinking as over $230 billion vanished in a single day. Market sentiment has deteriorated rapidly, reflected by the Crypto Fear & Greed Index, which tumbled to its lowest level since April, signalling growing anxiety across digital assets.
Fear & Greed Index Signals Market Distress
On Friday, CoinMarketCap’s Crypto Fear & Greed Index slid to 28, firmly in the “fear” zone and edging closer to “extreme fear”. The index, which measures sentiment using volatility, trading momentum and social trends, highlights a sudden shift from last month’s optimism.
The total market capitalisation of cryptocurrencies fell to approximately $3.54 trillion, down 6% from $3.78 trillion the previous day. This marked one of the steepest single-day losses seen in recent months.
Sentiment across traditional financial markets also weakened. The Fear & Greed Index for equities dropped to 22, reflecting extreme fear, as concerns over US credit market instability, regional bank exposure to risky loans and ongoing US-China trade tensions unsettled Wall Street.
Major Cryptocurrencies Extend Losses
Leading digital assets continued to decline as the sell-off intensified. Bitcoin (BTC) slipped nearly 6% to around $105,000, while Ether (ETH) dropped almost 8% to about $3,700. Among major altcoins, Binance’s BNB endured the heaviest losses, plunging close to 12%.
Chainlink (LINK) fell by 11%, and Cardano (ADA) slid 9%, extending declines that erased recent gains. Solana (SOL) and XRP each fell more than 7%, contributing to a broader market correction. Across the top non-stablecoin assets, average losses over 24 hours ranged between 8% and 9%.
Crypto Fear & Greed Index chart. Source: CoinMarketCap
Despite the sharp declines, liquidation activity remained far lower than the previous week. Data from CoinGlass showed that roughly $556 million in leveraged positions were liquidated, compared with nearly $20 billion during last week’s crash. Of this, around $451 million came from long positions, with $105 million from short positions.
Memecoins and NFTs Hit Hard
Speculative sectors such as memecoins and non-fungible tokens (NFTs) also faced heavy losses. Memecoins, which showed signs of recovery earlier in the week, fell by 33% within 24 hours. Leading tokens in the category dropped between 9% and 11%, although trading activity remained high at nearly $10 billion.
The NFT market, which had recently rebounded from a $1.2 billion wipeout, reversed gains and slipped below a $5 billion valuation — a level last seen in July. Data from CoinGecko revealed that most blue-chip NFT collections experienced double-digit declines.
Outflows From Crypto ETFs Intensify
Institutional sentiment mirrored retail uncertainty. Spot Bitcoin and Ether exchange-traded funds (ETFs) recorded notable outflows as investors moved to reduce exposure. On Thursday, spot Bitcoin ETFs registered outflows exceeding $536 million, while spot Ether ETFs saw net withdrawals of more than $56 million in a single day.
The latest downturn underscores persistent fragility in the crypto market, with global macroeconomic pressures and regulatory uncertainty continuing to influence sentiment. Analysts suggest that until confidence stabilises, volatility is likely to remain elevated.
