After showing signs of a bounce earlier this week, the crypto market has slipped back into negative territory. Bitcoin, which had briefly reclaimed the $104,000 level on Wednesday, is now trading below $102,000 after falling more than 3% in the past 24 hours. At one point, it dipped under $101,000 before stabilizing slightly.
Ethereum, XRP, and Solana also declined by over 3% each, giving back most of the gains from the previous day. The total crypto market cap is down by 2.5%, confirming a broad loss across most major tokens.
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Sentiment Still Weak Despite Improvement
The Crypto Fear and Greed Index has ticked up to 27, just above “extreme fear” levels. While this marks a slight improvement from earlier in the week, it still signals a cautious mood. Traders remain hesitant, with volatility returning quickly after even small rallies.
Despite today’s drop, some assets remain slightly above this week’s lows. However, the market remains fragile and sensitive to broader economic signals, as shown by the rapid shift in momentum over the past 48 hours.
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Broader Markets Under Pressure Too
The pullback in crypto comes alongside a broader decline in global risk assets. U.S. stock indexes fell sharply on Thursday, with the Nasdaq dropping nearly 2% and the S&P 500 down over 1%. Tech stocks led the losses after weaker-than-expected jobs data and renewed questions about corporate valuations.
October saw the highest number of layoff announcements for that month in over 20 years, according to Challenger, Gray & Christmas. The data added to concerns about economic slowdown, especially with the government shutdown continuing to delay key labor market reports.
Investors also reacted to disappointing earnings reactions from major tech firms and ongoing legal scrutiny over U.S. trade policy. Treasury yields dropped as bonds rallied, reflecting a risk-off mood across financial markets.
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Outlook Remains Cautious
With Bitcoin hovering just above $100,000 and sentiment still shaky, is remains to be seen whether the market can find support or if further declines are ahead. Economic uncertainty, interest rate expectations, and weakness in traditional markets are all weighing on crypto performance.
The next key data point could come from inflation figures due next week. Until then, the market may remain volatile, with sentiment swinging on external news rather than crypto-specific developments.
