Crypto Market Cap Drops Below $3T Amid Extreme Fear

Source: Coinomedia Original Title: Crypto Market Cap Drops Below $3T Amid Fear Original Link: https://coinomedia.com/crypto-market-cap-drop-6/ The global crypto market cap drop has intensified, falling 5% in the last 24 hours and bringing the total valuation below $3 trillion. The year-to-date decline now nears 30%, reflecting growing investor uncertainty in the face of weakening market conditions.

Bitcoin (BTC) is holding near $86,741, registering a marginal 0.3% daily decline. Ethereum (ETH), however, took a sharper fall, down nearly 4% to $2,835. This continued correction across major assets has rattled traders, pushing liquidations to $544 million across exchanges.

Extreme Fear Dominates Investor Sentiment

The Fear & Greed Index (FGI), a widely used measure of market sentiment, has now plunged to 17, placing the crypto market firmly in the “Extreme Fear” category. This level of fear often reflects a reluctance among retail investors to enter the market, while some analysts view it as a possible contrarian signal of a bottom forming.

Market Snapshot:

• BTC: $86,741 (-0.3%)
• ETH: $2,835 (-3.9%)
• Market Cap: $2.99T
• Liquidations: $544M
• FGI: 17 → Extreme Fear

Despite the mild decline in BTC, the broader market shows more signs of distress, with altcoins facing steeper losses. The recent sell-off highlights the fragile confidence in crypto assets as macroeconomic uncertainties and regulatory concerns linger.

What’s Next for Crypto Investors?

With the crypto market cap drop pushing values back to early-year levels, many investors are now watching for potential support zones and signs of capitulation. Analysts suggest keeping an eye on Bitcoin’s ability to hold the $85K range and whether Ethereum can recover above $3,000.

In the short term, volatility is expected to remain high. Market participants should remain cautious and focus on key indicators, including trading volumes, on-chain data, and macroeconomic signals.