The Crypto Fear & Greed Index fell to 'Fear' for the first time since April.
This occurred after the total market capitalization decreased by $100 billion, falling by 5.6% in the last 24 hours.
Whale activity surged sharply: $600 million was transferred to exchanges, and more than $25 billion was transferred in bitcoins.
This week, the cryptocurrency market saw a sharp shift: the Crypto Fear & Greed Index fell to 'Fear' for the first time since April 22, 2025. A sharp decline in total market capitalization by 5.6% devalued cryptocurrencies by more than $100 billion, leading to a sharp correction for Bitcoin, Ethereum, and the broader altcoin landscape.
The Crypto Fear & Greed Index hit “Fear” for the first time since Apr 22, 2025, after a 5.6% drop in total crypto market cap today.
Where do you stand on the scale? pic.twitter.com/zX3rtU7zys
— CoinGecko (@coingecko) June 6, 2025
Political shockwave: Musk vs. Trump
A contributing factor to the decline was the public confrontation between Elon Musk and U.S. President Donald Trump. What began as a spat on social media over economic policy quickly escalated into broader market concerns. Tesla shares fell about 17% in one session, dragging down major indices and putting downward pressure on cryptocurrency markets.
According to analyst Anra Taha, the time of the sharp decline in Tesla stocks closely coincided with a sharp increase in the volatility of digital assets. “It was a clear event of sentiment contagion,” Taha said. “Stocks and cryptocurrencies were sold off simultaneously — and we are seeing this pattern more and more often.”
Whales exacerbate the chaos by transferring $600 million to exchanges
The chaos was further intensified by massive whale movements to centralized exchanges (CEX). Over $600 million in cryptocurrency was transferred to CEX, 2500 $BTC ended up on #Binance , and then 80,000 $ETH flowed into derivatives platforms, indicating that whales were preparing to sell or hedge.
Meanwhile, Santiment reported three mega transactions in the network #bitcoin totaling over $25.8 billion on June 1 and 2. They included:
130,010 BTC ($14.1B)
78,647 BTC ($9.4B)
22,531 BTC ($2.36B)
These transfers coincided with Bitcoin's attempt to reclaim $107K, but instead marked a local peak, triggering a wave of short positions and profit-taking.
📊 Blockchain data indicates that 3 massive Bitcoin transactions on June 1st and 2nd correlated with crypto's local top when $BTC's market value was attempting to bounce back above $107K.
$44.03B worth of transaction volume was present on the Bitcoin blockchain, indicating a… pic.twitter.com/7FDexozitu
— Santiment (@santimentfeed) June 5, 2025
Hidden accumulation: institutions are quietly intervening
But beneath the surface chaos, quiet accumulation is taking place. According to analyst BaykusCharts on CryptoQuant, 22,500 BTC were withdrawn from exchanges in early June — a significant signal on the network.
“This is not a panic sell-off or retail speculation,” noted Baykus. “This is long-term accumulation, likely from institutional players such as providers #etf or OTC desks.”
The lack of immediate price action, despite such large withdrawals, indicates a phase of 'strategic accumulation' where smart money enters the market quietly, away from the noise.
