Attention everyone! According to the latest on-chain data and market sentiment indicators, the cryptocurrency fear and greed index has now dropped to 15, a new low since December 20 of last year, indicating extreme market panic. In addition to the decline in the prices of digital assets like BTC, this wave of low sentiment is also influenced by the following factors:
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[Latest News Summary]
• US Stock Market Plunge: The US stock market has recently shown extremely weak performance, with major indices continuously declining. Investors are worried about the global economic outlook, leading to a withdrawal of funds from high-risk assets, which further dampens sentiment in the cryptocurrency market.
• International Warfare: The international situation continues to be tense, with the shadow of war and escalating geopolitical risks. Global capital is in a heightened risk-averse state, which directly prompts capital flight from the cryptocurrency market, causing the sentiment index to continue to decline.
• Trump’s Executive Order: The latest executive order issued by Trump emphasizes strict regulation and risk control of digital assets. Although he had previously strongly supported cryptocurrencies, the tightening of current policies has made the market even more uneasy, raising concerns about future policy variables exacerbating market volatility.
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[Market Data and Impact]
• Fear Index Hits New Low: The fear and greed index has dropped to 15, indicating extreme market panic, with a large number of investors choosing to withdraw or remain on the sidelines.
• Major Capital Withdrawal: According to CoinGlass data, the amount liquidated in the derivatives market has reached 1.5 billion dollars in the past 24 hours, as market funds rapidly withdraw from the cryptocurrency market.
• BTC & Other Digital Assets: The price of Bitcoin has notably decreased recently, resulting in over 12% of BTC addresses currently in a state of loss, indicating widespread capital being trapped.
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[My Insights and Investment Reminders]
In this situation of intertwined negative factors, market panic is unlikely to dissipate quickly. Here are my judgments and reminders about the future direction of the market:
High short-term risk: The continuous plunge of US stocks, international warfare, and Trump’s new executive order are further heightening market panic. The cryptocurrency market may continue to be sluggish in the short term, and investors should not blindly chase high prices. Long-term potential still exists: Although sentiment is low at this stage, historical experience shows that market sentiment often exhibits cyclical fluctuations. Investors with a long-term investment philosophy can observe rebound signals after market adjustments, but must ensure proper risk management. Multi-channel information verification: In the face of this volatile situation, please closely monitor official announcements and on-chain data to avoid making impulsive decisions due to panic. Policy variables cannot be ignored: Trump's latest executive order may tighten regulations further but could also lay the groundwork for long-term stability after market turbulence. Investors need to continuously monitor policy trends and be prepared to respond.
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[Summary]
This time, the fear and greed index of the cryptocurrency market has fallen to 15, combined with the plunge in US stocks, the shadow of international warfare, and the pressure of Trump’s latest executive order, all contributing to the current extreme unease in the market. Everyone must remain calm and avoid blindly entering or exiting due to short-term volatility. Rational analysis and in-depth study of fundamentals are the best ways to protect our funds in this storm!
What do you think about this wave of market panic and capital withdrawal? Feel free to leave a message to discuss together and let’s explore this era full of variables and challenges!