The cryptocurrency market is facing a significant downturn once again, with market sentiment shifting from ‘panic’ to ‘extreme panic.’ Following a brief rebound, the market has experienced a sharp decline, triggering intense fear among investors.
Crypto Goes ‘Extreme Panic’
According to alternative data, the Cryptocurrency Panic and Greed Index has dropped to 15 today, down from 33 yesterday, signaling a transition from ‘panic’ to ‘extreme panic.’
The global cryptocurrency market cap has fallen to $2.84 trillion, representing a 12.8% drop in the past 24 hours. Additionally, the total trading volume for cryptocurrencies in the last 24 hours stands at $215 billion.
Bitcoin , XRP, ETH, SOL Continues to Dip
Bitcoin (BTC) currently dominates 58.5% of the market, while Ethereum (ETH) holds 8.76% of the market share. Despite the downturn, the largest gainers in the industry are Polkadot Ecosystem and XRP Ledger Ecosystem cryptocurrencies.
Bitcoin is trading at $83,756, having dropped by 9.63% in the last 24 hours. As a result, Bitcoin’s market cap has decreased from $1.85 trillion yesterday to $1.66 trillion today. Its 24-hour trading volume has also fallen by over 18%, currently at $76.29 billion.
Ethereum has seen an even steeper decline, down 14.61% to $2,082.82. Its market cap has shrunk to $251 billion, reflecting the drop in trading volume over the past 24 hours.
Meanwhile, altcoins such as Ripple (XRP), Solana (SOL), and Cardano (ADA) have also experienced significant losses. XRP is trading at $2.31, down 17.10% after a recent surge following a statement from former President Donald Trump regarding its inclusion in a ‘crypto reserve.’ Solana (SOL) has fallen by 19%, now priced at $136.41.
The Panic and Greed Index, which is calculated based on several factors including volatility, market trading volume, social media heat, market research, Bitcoin’s dominance, and Google trends, continues to reflect growing concerns about the market’s stability.
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