On August 6, the Crypto Fear and Greed Index fell to an extreme fear score of 17, its lowest since July 2022. This sharp drop in market sentiment comes as spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows.
The index’s decline from 67 on July 29 to 17 reflects heightened anxiety among investors. On the same day, spot Bitcoin ETFs reported outflows totaling $168.4 million. The bulk of these outflows came from Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF, which saw $69.1 million and $69 million in withdrawals, respectively.
In contrast, some Bitcoin ETFs recorded inflows. Grayscale Bitcoin Mini Trust saw $21.8 million, VanEck Bitcoin ETF $3 million, and Bitwise Bitcoin ETF $2.9 million. BlackRock’s iShares Bitcoin Trust did not experience any changes.
Meanwhile, spot Ether ETFs fared better, with a $48.8 million inflow. The iShares Ethereum Trust led with $47.1 million in new investments, followed by VanEck and Fidelity’s Ether products with inflows of $16.6 million and $16.2 million, respectively.
On August 5, Bitcoin’s 10% drop and Ether’s 18% plunge within two hours led to over $600 million in leveraged long positions being liquidated and significant losses in altcoins. The broader US stock market also lost trillions in value due to weak employment data, slowing tech growth, and recession fears.
Trader Bob Loukas called the past three days a rare event with $500 billion lost from the crypto market cap, while Bitcoin has rebounded 11.85% to $55,680. The steep decline in the Crypto Fear and Greed Index and substantial Bitcoin ETF outflows reveal a deepening investor anxiety amid market instability.
