Market Correction Grips Crypto as Fear Index Climbs to 28, BTC and ETH Feel Pressure

The cryptocurrency market entered correction territory over the past day, dashing hopes for a robust year-end rally. The broader crypto market capitalization retreated 1.16%, settling at $2.95 trillion, while trading volumes remained subdued at $79.72 billion—marking a 0.01% decrease from the previous period.

What’s particularly noteworthy is the psychological shift in market sentiment. The Crypto Fear and Greed Index has spiked to 28, signaling that fear has taken firm control of investor behavior. This elevated fear index reflects growing uncertainty despite several bright spots in the altcoin space.

Bitcoin and Ethereum Face Headwinds Amid Broader Dip

Among the major cryptocurrencies, Bitcoin ($BTC) bore the brunt of selling pressure, sliding to $93,070 with a 2.18% daily decline. The king coin’s market dominance narrowed to 56.44% as capital rotated elsewhere. Meanwhile, Ethereum ($ETH) experienced an even steeper correction, dropping 3.21% to reach $3,210, with its market share declining to 11.77%.

Despite the broader crypto dip affecting top-tier assets, Ethereum’s 12.0% market dominance in the original period showed resilience, though current data suggests further weakness.

Meme Coins Defy Market Gravity with Triple-Digit Surges

Interestingly, while the overall market retreated, select altcoins staged explosive rallies that stand in stark contrast to the prevailing bearish sentiment. Leading the charge were Book of Meme 3.0 ($BOME), which rocketed 672.92% to hit $0.0000001414, followed by TRUMP MAGA ($MAGA) with a 778.72% surge reaching $0.01958.

The OFFICIAL TRUMP (TRUMP) token, meanwhile, tumbled 5.44% to $4.98—a significant reversal from its earlier 460.13% rally. This wild volatility underscores the speculative fervor in the meme coin segment, where extreme moves in both directions have become the norm.

DeFi Ecosystem Holds Ground While NFT Market Faces Sharp Pullback

On the decentralized finance front, total value locked (TVL) managed a modest 0.05% increase, reaching $117.665 billion. The leading DeFi protocol, Aave, however, declined 1.06% to $33.143 billion, reflecting the broader pressure on major lending platforms.

Conversely, the NFT market painted a bleaker picture, with overall sales volume plummeting 38.72% to $7.23 million. The top-performing NFT collection, Courtyard, bucked the trend with a 2.37% gain to $621,592, demonstrating selective strength within a challenged segment.

Cross-Border Finance and Strategic Investments Shape Industry Narrative

Beyond market movements, significant institutional developments are reshaping the sector. JPMorgan has suspended accounts tied to stablecoin projects Kontigo and Blindpay due to Venezuela-related sanctions compliance, highlighting ongoing regulatory pressures in traditional finance integration.

On a more bullish note, Intercontinental Exchange (ICE) is preparing to deploy approximately $5 billion into MoonPay, one of the leading crypto payment infrastructure platforms. This major investment signals institutional confidence in payment rails despite near-term market weakness.

Argentina’s economic policy shift also merits attention, as the Senate greenlighted the 2026 budget framework of President Javier Milei, designed to alleviate economic tensions—a backdrop that could influence regional crypto adoption trends.