The wave of optimism that dominated the crypto market in recent weeks has quickly turned into fear, as over $230 billion in market value vanished within 24 hours amid a broad sell-off.
According to CoinMarketCap, the Crypto Fear & Greed Index dropped sharply to 28, signaling a strong shift toward fear — the lowest reading since April. The index, which reflects factors like market momentum, volatility, and social sentiment, is now just a few points above the “extreme fear” zone.
The total crypto market capitalization fell from $3.78 trillion to $3.54 trillion, marking a 6% decline in a single day — one of the most abrupt drops in months.
Traditional markets mirrored the anxiety: the Fear & Greed Index for equities slid to 22, deep in “extreme fear” territory, after U.S. stocks closed lower Thursday due to concerns over credit instability, regional bank losses, and renewed U.S.–China trade tensions.
Major cryptocurrencies plunge
Most leading cryptocurrencies saw steep losses as selling pressure intensified.
Bitcoin (BTC) dropped nearly 6% to around $105,000, while Ethereum (ETH) fell 8% to approximately $3,700. Among top altcoins, BNB (BNB) led declines with a 12% plunge, followed by Chainlink (LINK), which lost 11%, and Cardano (ADA), which dropped 9%.
Solana (SOL) and XRP also fell more than 7%, erasing a portion of the double-digit gains they posted earlier this month. Overall, the largest non-stablecoin assets shed 8–9% on average over the past 24 hours.
Liquidation data from CoinGlass showed around $556 million in leveraged positions wiped out — far less than the $20 billion recorded during last week’s market crash. Of this total, $451 million came from long positions, while shorts accounted for roughly $105 million.
Memecoins, NFTs, and ETFs feel the shockwave
The crash didn’t spare smaller sectors of the crypto economy.
Memecoins, which had shown signs of recovery earlier in the week, lost about 33% in total market value. Leading tokens in the sector fell between 9% and 11%, though trading volumes stayed relatively high near $10 billion.
NFTs also erased recent gains, with the market value sliding below $5 billion — a threshold not seen since July. CoinGecko data indicated that most top-tier collections suffered double-digit losses in a single day.
Meanwhile, spot crypto ETFs registered sharp outflows. Bitcoin ETFs saw over $536 million in redemptions on Thursday, while Ether ETFs recorded $56 million in daily outflows, showing that even institutional investors are adopting a cautious stance amid heightened uncertainty.
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