Crypto Markets Plunge into 'Extreme Fear' Amid Selloff, While Altcoins Surge and Ethereum Sees Dip Buying
Crypto Markets Plunge into 'Extreme Fear' Amid Selloff, While Altcoins Surge and Ethereum Sees Dip Buying
The cryptocurrency market has entered a period of 'Extreme Fear' as major digital assets continued their decline. Bitcoin, Ethereum, Binance Coin, and Solana experienced drops ranging from 3% to 8%, pushing the Crypto Fear & Greed Index into 'Extreme Fear' territory. OG Bitcoin holders selling $40 billion in the past month further exacerbated negative sentiment, despite some institutional interest in future Bitcoin purchases.
In contrast to the broader market downturn, several altcoins defied the trend with significant gains, including Decred surging 111%, Dash climbing 50%, and Internet Computer gaining 30%. Industry developments saw Ripple launch prime brokerage services and Hollywood.com partner with Crypto.com for a prediction market. Ethereum, while experiencing significant outflows, also showed signs of 'dip buying,' suggesting a potential bounce contingent on improving macro conditions.
Crypto Market Plunges into 'Extreme Fear'
The cryptocurrency market is currently grappling with a severe downturn, reflected by the Crypto Fear & Greed Index slipping into 'Extreme Fear'. Major digital assets have seen considerable losses, with Bitcoin (BTC) falling 3% to $104,500, Ethereum (ETH) dropping 5% to $3,520, Binance Coin (BNB) sliding 6% to $955, and Solana (SOL) plunging 8% to $162. This market contraction led to over $1.2 billion in liquidations on Monday, predominantly affecting long positions. The negative sentiment around Bitcoin was compounded by reports of OG holders selling $40 billion in the past month, raising questions about a market bottom. However, amidst the bearish trend, Strategy revealed plans to issue preferred stock with proceeds earmarked for Bitcoin purchases, indicating a long-term demand signal from some institutional players.
Altcoins Defy Trend with Triple-Digit Gains
While the majors struggled, several altcoins demonstrated impressive resilience and growth. Decred (DCR) led the charge with a remarkable 111% surge, followed by Dash (DASH) which climbed 50%, and Internet Computer (ICP) gaining 30%, positioning them as top performers during the broader market slump.
Industry Developments and Ethereum's Resilience
Beyond price action, the crypto ecosystem saw a mix of significant events. The DeFi sector faced challenges as Balancer suffered a substantial $128 million exploit, prompting concerns across Ethereum and linked networks. On a positive note, Ripple expanded its offerings by launching prime brokerage services for digital assets in the U.S. In celebrity-backed ventures, Hollywood.com announced a partnership with Crypto.com to develop an entertainment-focused prediction market. Regulatory discussions also continued, with U.S. prosecutors seeking maximum sentences for the founders of Samurai Wallet, and FTSE Russell announcing plans to publish its global market index data directly on the blockchain via Chainlink.
Interestingly, despite experiencing its third-largest spot outflow since October, Ethereum (ETH) showed signs of strength as traders engaged in 'buying the dip,' suggesting underlying confidence and a potential for a bounce should macro conditions improve.