The global crypto market continued its steep correction, with total capitalization sliding 6.18% to $3.51 trillion. Market sentiment has turned sharply risk-off, as the Fear and Greed Index fell to 28 (“Fear”), signaling investor caution following several days of heavy selling.
ETF Outflows and Volatility Surge
Data from SoSoValue shows crypto ETF net outflows of around $590 million on October 16, reflecting sustained institutional withdrawals. The move coincides with a sharp drop in open interest, $1.08 trillion in perpetuals and $3.33 billion in futures, as leveraged traders unwind positions. At the same time, volatility has intensified, with Bitcoin’s implied volatility rising to 51.27 and Ethereum’s to 79.62, suggesting higher market uncertainty in the days ahead.
Bitcoin Dominance Climbs, Altcoins Lag
Bitcoin’s market share increased to 59%, while Ethereum’s slipped to 12.7%, and other altcoins collectively hold 28.2%. The Altcoin Season Index dropped to 27, confirming a clear “Bitcoin Season” phase where capital rotates back toward BTC amid broader market stress.
Technical Metrics Signal Oversold Conditions
The Average Crypto RSI stands at 34.95, indicating oversold levels across the market. Despite this, traders remain cautious, awaiting signs of stabilization after the week’s major drawdown.
Market Momentum Remains Weak
The CoinMarketCap 20 Index, tracking the largest crypto assets, fell 8.01%, while total market trading volume reached $252.85 billion over 24 hours. With sentiment dominated by fear and ETF outflows accelerating, the crypto market faces a critical test to hold above the $3.5 trillion threshold before confidence can recover.
