The crypto market is back under strain as a mix of profit-taking, institutional selling, macro uncertainty and weak liquidity drives another round of declines. The shift has pushed sentiment to its most fragile point in months, with the Fear & Greed Index plunging to 10 — deep in “extreme fear” and its lowest reading since late February.
The mood souring comes after a week of losses across major cryptocurrencies. Bitcoin once again led the downturn, falling to just below $96,000 and dipping under the $100,000 level for the second time this month. The move leaves BTC down more than 5% over the past seven days and trading at its weakest point since early March, extending its retreat from its all-time high above $120,000.
Broader market performance mirrored bitcoin’s slide. The CoinDesk 20 (CD20) index — a measurement of the largest and most liquid digital assets — dropped roughly 5.8% for the week.
According to Jake Kennis, Senior Research Analyst at Nansen, the sell-off stems from several overlapping pressures. “The selloff is a confluence of profit-taking by LTHs, institutional outflows, macro uncertainty and leveraged longs getting wiped out,” he said in an emailed statement. “It’s clear the market has temporarily chosen a downward direction after a long period of consolidation.”
Market uncertainty has been amplified by shifting expectations around U.S. monetary policy. Hopes for a Federal Reserve rate cut this month have faded, with the CME FedWatch tool placing the odds of a 25 basis-point cut near 50%. Prediction platforms like Kalshi and Polymarket are reflecting similar probabilities.
Further complicating the outlook, the White House has warned that key U.S. economic releases — including October inflation data — may be delayed due to disruptions caused by the recent government shutdown, leaving traders with less macro guidance at a critical moment.
Liquidity remains a lingering weakness. Order-book depth on major centralized exchanges still hasn’t recovered from October’s crash and continues to sit at structurally lower levels, making the market more sensitive to selling pressure and amplifying the intensity of downturns.
Share this content:
