The crypto market has entered a deep state of fear, with sentiment collapsing sharply over the past week. Key Takeaways: Crypto sentiment plunged into Extreme Fear, with Alternative.me’s index dropping to 22. Bitcoin struggled near $110,000 amid renewed US–China trade tensions. Long-term holders sold 265,700 BTC in the past month, while overleveraged traders faced $418 million in liquidations. According to Alternative.me’s Fear & Greed Index, market sentiment fell to 22, Extreme Fear, down from 64 ...

Group 1 - Bitcoin's price has decreased by 1.4% in the last 24 hours, settling at $121,305, despite a 3.3% increase over the week and strong institutional demand reflected in spot Bitcoin ETF inflows [1][3] - Bitcoin dominance has risen to 58.58%, the highest since June, as traders shift towards safer assets amid U.S. debt ceiling concerns and a stronger dollar, while Ethereum's dominance has dropped to 12.66% [2] - U.S. spot Bitcoin ETFs have seen over $2.2 billion in net inflows this week, marking the best performance since April, which has helped Bitcoin surpass a key resistance range [3] Group 2 - The correlation between cryptocurrency and the S&P 500 has increased to 0.83, the highest since August, indicating a cautious risk sentiment among traders [4] - Zcash has outperformed with a 33% increase in the last 24 hours and over 330% in the past month, while Solana-based meme coin Useless has reached a new all-time high, suggesting potential investment opportunities in these assets [5]

Bitcoin's market capitalization has reached roughly $2.4 trillion, a value that exceeds the total market capitalization of the largest five banks in the world. As of October 3, Bitcoin is trading above $120,700 and remains the largest digital asset by market capitalization, with a volume of $71.1 billion. Big banks left in the dust Over the past five years, Bitcoin has seen a price appreciation of more than 1,000%. By comparison, the largest banks in the world have generated far lesser returns. JPMorgan ...

Core Insights - The digital asset market is evolving into a more diverse and institutionally engaged environment, emphasizing execution over mere exposure [1] - Recent trends indicate a significant shift in capital flows, particularly in U.S. spot ETFs, highlighting the importance of active management in a fragmented market [2][3] Market Dynamics - Innovation is outpacing index construction, leading to structural inefficiencies and cross-market dislocations, with macro conditions remaining stable [2] - U.S. spot Bitcoin ETFs have experienced notable capital rotation, with daily inflows and outflows reflecting active trading strategies [3] Investment Opportunities - Opportunities in the digital asset market require a multi-dimensional understanding of both traditional and digital assets, focusing on high-conviction strategies rather than sentiment-driven trades [4] - The expansion of crypto credit markets is creating differentiated opportunities for active managers to price risk effectively, particularly as fiat liquidity tightens [6]