Bearish sentiment is taking over the crypto market this Friday, with the Crypto Fear & Greed Index reaching a level of 23, marking a return to “fear” territory. This overall decline, with the price of Bitcoin retreating 5%, was driven by an outflow of more than 2,000 BTC from spot ETFs in the US, signaling a weakening in short-term institutional demand.
The weak market structure was further impacted by a cascade of liquidations in leveraged positions, which accelerated losses across the entire ecosystem. Additionally, rising tensions in the Middle East increased uncertainty and caused investors to move away from risk assets, confirming that cryptocurrencies continue to behave with a high correlation to traditional equity markets during times of global instability.
The market is moving through a defensive phase where liquidity is tightening and risk appetite is minimal. The next step for a potential recovery will depend on the stabilization of institutional flows into ETFs and a decrease in global macroeconomic risks.
Source:https://coinmarketcap.com/charts/fear-and-greed-index/
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