The CoinMarketCap Fear and Greed Index fell to 39 on September 24, marking its lowest point since March and indicating a shift to fearful market sentiment. This decline coincides with a 14% weekly increase in derivatives trading volume, which reached $1.42 trillion, while spot trading volume decreased by 31% to $162.95 billion. Bitcoin's market dominance held steady at 57.72%, and open interest rose to $1.07 trillion, reflecting increased leverage in the market.
Despite regulatory optimism, such as the approval of Grayscale's Ethereum ETF, bearish technical indicators persist, with Bitcoin's price dropping below $113,000. This combination of factors suggests a complex market environment where high leverage and regulatory developments are juxtaposed against negative price movements.
Crypto Fear Index Drops to 39 Amid Rising Derivatives Leverage
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