Bitcoin Updates: Collapse of Crypto Market Makers Sparks 8-Day Wave of Fear Amid Deepening Liquidity Crunch
- Crypto Fear & Greed Index hit 19 for 8 days, signaling extreme panic amid $420M ETF outflows and liquidity crises. - Market makers collapsed due to stablecoin mispricing, wiping 2M accounts and amplifying volatility since October. - Malaysia cracks down on $1B-loss crypto mining , while Bitfury shifts $1B to tech amid plunging mining profits. - Trump family lost $1.3B in crypto assets, including Bitcoin mining and memecoins, despite claiming volatility as opportunity. - Experts predict 6-8 week stabiliza
The Crypto Fear & Greed Index, widely regarded as a crucial indicator of investor mood,
This extended period of fear is the result of several converging challenges. Since October, U.S. spot crypto ETFs have seen net outflows exceeding $420.8 million, with
Regulatory and operational challenges are making the situation worse. In Malaysia, authorities are cracking down on illegal crypto mining after estimating that such activities have cost the national grid $1 billion.
Major losses among prominent players further highlight the market's instability. The Trump family's crypto-related businesses have seen their value drop by over $1.3 billion since September, with their Bitcoin holdings, memecoins, and mining interests all suffering. Donald Trump Jr. and Eric Trump's mining company,
Past trends indicate that once liquidity returns, the market could recover quickly. The current setup, with spot ETFs and institutional infrastructure, is much more robust than during the 2022 collapse. Analysts
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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