Fear returns to the crypto market as $230B vanishes overnight

Investor sentiment turned sharply bearish as crypto’s fear index plunged to 28, and $230 billion in value evaporated in a single day.

The crypto market’s Fear & Greed Index flipped sharply to “fear” this week, falling to levels last seen in April, as a market sell-off erased over $230 billion in a single day. 

On Friday, CoinMarketCap’s Crypto Fear & Greed Index, which tracks volatility, market momentum, social media trends and dominance metrics, fell to a low of 28, which is within the “fear” category and is inching closer to “extreme fear.” 

CoinMarketCap data showed that on Friday, the total crypto market capitalization dropped to about $3.54 trillion, a 6% drop from $3.78 trillion the previous day. This wiped out over $230 billion in value from the sector, marking one of the sharpest single-day declines in months. 

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