Crypto Traders Are Close to 'Fear' as Bitcoin Price Slips Below $112k

At the same time, the Crypto Fear & Greed Index fell as low as 37 in the early hours, moving into the territory of the gauge that suggests investors are becoming afraid the market is too risky to buy. It recovered to 40 by the middle of the day as traders became a little less cautious.

Cool market

A quick snapshot look at the altcoins shows that the market remains cool following the drawdown at the start of the week.

Ether (ETH) was also lacklustre, posting an intra-day decline of 0.3% to $4,192, down close to 6% weekly. Solana (SOL) also posted declines, while XRP edged a little higher, climbing 0.3% to $2.8642. BNB remained the best performer of the top 10 crypto assets, erasing about half of Monday’s losses to regain territory above $1,000.

The broader market reflected the weaker tone. The total crypto market cap stood at $3.9tn with 24-hour volumes near $165bn, according to CoinMarketCap. Bitcoin dominance rose to 57.7%, highlighting rotation from altcoins back into BTC, while Ether’s share slipped to 13%.

ETF Outflows
 

ETF (exchange-traded fund) flows also hinted at cooling demand. These crypto investment products saw $445mn of net outflows on 22 Sept, reversing part of the gains seen earlier in the month. Meanwhile, open interest in derivatives markets totaled about $1.1tn — $1.09tn in perpetuals and $4.66bn in futures — suggesting positioning remains elevated despite recent liquidations.

Sentiment gauges underline the fragility of the market at a given time. The Fear & Greed Index at 40 reflects a market mood closer to risk aversion than optimism. 

For market participants, this index is a widely watched barometer of crypto psychology, ranging from “extreme fear” (under 20) to “extreme greed” (above 80). Periods of fear often coincide with price consolidations or corrections, while high greed typically marks overheated rallies.