I just checked the fear and greed index, and it’s at 18... extreme fear again. It had recently rebounded to 25 in the middle of the week but cooled off quickly. The data shows that liquidity remains a serious problem in crypto.

What’s most striking is that nearly 38% of altcoins are hitting all-time lows. Overall trading volume has dropped about 50% according to CryptoQuant, so capital is increasingly concentrated in the big assets. Bitcoin remains under pressure since it fell more than half from its high, and altcoins have lost hundreds of billions.

The strange thing is that people are searching for 'Bitcoin going to zero' on Google Trends. That’s usually a sign that retail has lost confidence. Geopolitical frictions and macroeconomic uncertainty are hitting hard. When risk appetite drops, crypto markets feel it first.

Liquidity is the key here. With thinner books, any bad news can cause sharp declines. Social sentiment data shows that interest in altcoins is at multi-year lows, which typically means capital is leaving riskier assets.

As long as there are no clear signals that macro conditions are stabilizing or that geopolitical dynamics are changing, we’re probably still in cautious mode. Traders are waiting for real catalysts before putting in serious capital. The crypto market needs something to change in the macro context for sentiment to turn around. Until then, volatility and probable declines if news worsens.