The cryptocurrency market is tense, and the Crypto Fear and Greed Index has plunged to 32, indicating that fear is now creeping in. Sentiment in the market has changed dramatically, and it seems that traders have now turned to the anxious side. This latest sentiment shift could either set the stage for a relief bounce or drive us into a lower panic mode, with us left to wonder just what is next. The Crypto Fear and Greed Index is sitting at 32—fear is creeping in. Market sentiment has flipped, and traders are on edge. Moments like these either set the stage for a bounce or fuel even more panic. Let’s see how this plays out. pic.twitter.com/j85UyVbBJ5 — Kyledoops (@kyledoops) March 17, 2025 Panic Selling Takes Hold One metric that’s sounding the alarm is the Short-Term Holder Coin Days Destroyed (STH-CDD) metric, which is spiking sharply. This indicator measures the number of coins that have been held for less than 155 days and are being sold, signaling panic selling among short-term holders. Historically, these spikes have aligned with fear-driven sell-offs, adding to downside pressure. This trend is clear and has no ambiguity: if panic selling doesn’t stop, we may see more volatility coming down the pike. However, this trend also has some serious implications for investors—and not just the kinds of investors who, say, hold a retirement fund that’s getting hit hard by the recent market downturn. Short-term holders are feeling the heat. The Short-Term Holder Coin Days Destroyed (STH-CDD) metric is spiking, signaling panic selling. Historically, these spikes align with fear-driven sell-offs, adding to downside pressure. If this continues, more volatility could be on the… pic.twitter.com/ti6zPpVhRQ — Kyledoops (@kyledoops) March 17, 2025 Institutional Investors Flee the Market The panic selling is not confined to individual investors; institutional investors are also vacating the market. Last week, the ETFs of Bitcoin saw an astonishing net outflow of $838 million. The Blackrock ETF IBIT alone experienced a net outflow of $338 million, while the Fidelity ETF FBTC saw a net outflow of $317 million. Last week (March 10 to March 14, EST), Bitcoin spot ETFs had a net outflow of $838 million. Blackrock ETF IBIT had a net outflow of $338 million, and Fidelity ETF FBTC had a net outflow of $317 million. Ethereum spot ETFs had a net outflow of $178 million in a single week.… — Wu Blockchain (@WuBlockchain) March 17, 2025 These huge outflows indicate that institutional investors are swiftly losing trust in the crypto market. This outpouring of capital could make the current downturn worse, inflicting even more pain on anyone holding a cryptocurrency. With the market on the edge, investors are left pondering what’s ahead. Will the present anxiety and panic foster a rebound, or will it usher even more volatility our way? One thing’s for sure: the next few days will be critical in determining where the cryptocurrency market goes from here. To sum up, the cryptocurrency market is afflicted by fear, with the market taking hold of panic selling. The institutional investors that were in the market are now fleeing, and the implications are clear: we might see even more volatility in the market going forward. For investors in the crypto space, the impending landscape is even more treacherous. Market conditions are worsening, and the path to an eventual recovery remains unclear. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
