The Fear and Greed Index currently reads 22 – signaling a zone of “extreme fear,” similar to sentiment on U.S. stock exchanges.
According to CoinMarketCap, BTC dropped 5.21% over the past 24 hours and is trading below $105 – its lowest level since early September. ETH fell 6.8% to settle below $4,000, trading around $3.727. Other major assets such as BNB, XRP, and Solana are also in decline.
The market is reacting to growing tension between the U.S. and China. Comments from President Donald Trump about the ongoing trade war have further pressured prices. Analysts note that concerns over the health of U.S. regional banks have added to the sell-off, contributing to declines in stock indexes and spilling over into crypto markets.
The Nasdaq and S&P 500 indexes lost 1.4% and 1.2%, respectively.
According to Reuters, U.S. stocks closed lower after reports of bad loans at regional lenders Zions Bancorp and Western Alliance Bancorp. Both institutions have reportedly become subjects of a fraud investigation involving the same group of borrowers.
Bitcoin Holds at the 200-Day EMA
Investor and entrepreneur Lark Davis noted that Bitcoin is currently sitting on its 200-day exponential moving average (EMA), which often acts as the dividing line between bulls and bears.
“Bulls need to hold this line. If they fail, we could see a test of $100,000 as support,” he said.
