Crypto Market Sentiment Turns Neutral Amid 1.83% Capitalization Dip

The Crypto Fear & Greed Index has fallen to 48, indicating a neutral sentiment among investors. This shift reflects growing caution in the market, with investors unsure whether to be confident or cautious. The total market capitalization has dipped by 1.83% to $3.28 trillion, further highlighting the market's uncertainty. This sentiment is influenced by broader macroeconomic and geopolitical factors, including renewed tariff threats, escalating tensions in the Middle East, and debates surrounding stablecoin regulation in the US. Bitcoin's dominance stands at 64%, while Ethereum holds 9.3% of the market share. The Altcoin Season Index is at 23/100, showing that altcoins are not leading the market narrative.

In the past 24 hours, over 105,830 traders were liquidated, resulting in the loss of $319.18 million in positions. Ethereum traders were the most affected, with $100.83 million in liquidations, followed by Bitcoin traders with $82.89 million. The largest individual liquidation occurred on Binance’s ETH/USDT pair, valued at $4.23 million. These figures underscore the risks of high leverage in volatile market conditions and the disconnect between trader expectations and market direction.

The Fear & Greed Index has declined from the Greed zone earlier this month to a neutral score of 48. This decline coincides with Bitcoin’s price retracing from highs above $111,000 to lows near $105,000 over the past two weeks. The index briefly dipped below the neutral threshold around June 5 and again showed hesitation around June 13–15, reflecting investor indecision. Despite relatively stable BTC volume, the sentiment remained constrained in the Neutral zone. The combination of heightened liquidation pressure and sentiment swing suggests a market awaiting a decisive catalyst.

A reading of 48 on the Fear & Greed Index indicates a neutral sentiment, where investors are neither overly fearful nor greedy. The recent spike in liquidations is due to high-leverage positions being wiped out during sudden price swings, exacerbated by geopolitical and regulatory uncertainty. The crypto market's downturn is attributed to complications in the Israel-Iran conflict, tariff threats, debates on stablecoin regulation, and growing liquidations.