Price Analysis View Non-AMP

Crypto Fear and Greed Index Signals Extreme Fear Amid U.S.-China Trade War

Published by
Elena R

History is gradually unfolding as China takes heads on the United States in the ongoing global trade wars. The CBOE Volatility Index (VIX) surged 11 percent in the past 24 hours to hover about 52.32, signaling further bearish sentiment for the S&P 500 and other major global stock indexes.

With the U.S. Customs and Border Protection having already implemented a 104 percent tariff on goods flowing from China, further selloff is anticipated after the New York market opens later today. Moreover, Beijing is likely to escalate the tariff war before potential diplomatic talks begin between the two behemoth economies to quell the fears.

Crypto Experience Extreme Fear

The wider crypto market has experienced significant volatility in the recent past, following an average 20 percent drop in U.S. stocks and major global stock indexes. With Bitcoin price signaling further weakness in the near term, the fear of further capitulation on the wider altcoin market is palpable. 

Moreover, on-chain data shows whale crypto investors have been on a selling spree causing further capitulation. In the past 24 hours, the overall crypto futures open interest (OI) dropped by 3 percent to hover about $92 billion at the time of this writing.

According to Coinmarketcap’s Fear and Greed index, the measure is currently at 15, which implies extreme fear from traders. The Bitcoin fear and greed index dropped to 18, which also implies extreme fear, as the BTC price dropped to $75k earlier today. 

Similarly, the Ethereum fear and greed index dropped to 20, which is also at extreme fear. Meanwhile, the memecoin fear and greed index is at 100, signaling extreme free from traders, amid anticipated market rebound ahead.

Bigger Picture

Amid the ongoing global economic crisis, it is prudent to consider that the mainstream adoption of crypto assets has reached nation-states after overwhelming support from institutional investors. Already, the United States intends to tap into Bitcoin and some altcoins to boost its economy in the coming years.

However, a COVID-19 capitulation is likely in the coming days amid heightened fear and speculative selloff.

FAQs

How is the U.S.-China trade war affecting crypto markets?

Crypto is plunging as global stock selloffs spill into digital assets, with Bitcoin and altcoins facing panic selling and extreme fear levels.

Why did Bitcoin drop to $75K today?

Bitcoin fell due to rising market fear, whale selloffs, and broader economic uncertainty tied to U.S.-China trade conflicts.

What is the impact of tariffs on global stock markets?

High tariffs raise costs, disrupt trade, and fuel investor fear, often triggering stock selloffs and spiking volatility indexes like the VIX.

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

Recent Posts

SUI and POL Investors Are Quietly Rotating Into Codename:Pepe — What’s Fueling This Shift?

Investors in SUI and POL are beginning to rotate into Codename quietly:Pepe, an emerging AI-powered…

May 4, 2025

$350 Might Just Be Enough—XYZ, SOL, and ADA Are Testing the Boundaries

A small investment might unlock significant opportunities as certain digital currencies push their limits. Tokens…

May 4, 2025

Fact Check: Will Ripple Vs SEC End on Thursday?

The long-running legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) might…

May 4, 2025

Pi Coin News: Banxa Opens Doors to Pi Network in 100 Plus Countries with KYB Approval

A few days ago, Banxa temporarily suspended Pi transactions, likely due to pending KYB (Know…

May 4, 2025

XRP Price Prediction For May 2025

XRP is currently trading in a tight range and continues to struggle to break above…

May 4, 2025

XRP Rich List: How Much XRP Puts You in the Top 10%

XRP is one of the most talked-about cryptocurrencies, but few people understand how small its…

May 4, 2025