Fear and liquidity squeeze signal crypto market slowdown

CryptoQuant said the crypto market has entered a slowdown phase as fear rises and liquidity contracts, according to a Dec. 17 Quicktake.
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CryptoQuant said in a Quicktake published on Dec. 17 that the crypto market has entered a ā€œslowdown phaseā€ as fear rises and liquidity contracts.

The note points to Bitcoin’s Fear & Greed Index falling to 11, a level labeled ā€œExtreme Fear,ā€ signaling a risk-off posture that can translate into thinner market depth and more reactive pricing for crypto participants.

Next, stakeholders will watch whether sentiment and liquidity stabilize, since a shift from extreme fear toward normalization is typically the first gate for a credible trend change after a drawdown.

Source: CryptoQuant.


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