Crypto market cap, $230 billion evaporated in a day…"Macroeconomic impact"

The crypto asset market lost $230 billion in market capitalization in a single day, showing a sharp contraction in investor sentiment.

On the 17th (local time), Cointelegraph reported that the Fear & Greed Index provided by CoinMarketCap reached 28 points, moving into the fear phase. Total crypto asset market capitalization was recorded at $3.54 trillion, a 6% decrease from the previous day, with $230 billion evaporating in a single day. This is the steepest daily decline in recent months.

Traditional financial markets also saw spreading unease. Due to U.S. credit market instability, bad loans by regional banks, and U.S.-China trade tensions, major New York stock indices fell across the board, and the traditional asset fear index entered the 'extreme fear' zone.

Major crypto assets also fell across the board. Bitcoin (BTC) remained around $105,000 after falling nearly 6%, and Ethereum (ETH) fell 8% to trade near $3,700.

Furthermore, the slump affected not only major crypto assets but also memecoins, non-fungible tokens (NFTs), and exchange-traded funds (ETFs). Memecoins fell an average of 33% over 24 hours, and trading volume approached $10 billion. The NFT market had recovered after $1.2 billion evaporated last week but fell back below $5 billion, retreating to July levels.

Spot Bitcoin ETFs and spot Ethereum ETFs saw outflows of $536 million and $56 million respectively, suggesting institutional selling pressure.

The outlet assessed that "macroeconomic uncertainty is increasing downward pressure on the market rather than the fundamentals of major assets."