- The Crypto Fear & Greed Index has slid into “Fear” territory for the first time since April,
- This followed a $100 billion wipeout in total market cap, which dropped 5.6% in the past 24 hours.
- Whale activity surged, with $600M moved into exchanges and over $25B in Bitcoin transferred.
The cryptocurrency market took a sharp turn this week, with the Crypto Fear & Greed Index slipping into “Fear” territory for the first time since April 22, 2025. A brutal 5.6% drop in total market capitalization erased over $100 billion in value, dragging Bitcoin, Ethereum, and the broader altcoin landscape into a steep correction.
Bitcoin fell to $103K at press time, while Ethereum dropped to the critical $2,400 level. Altcoins bled substantially as well with AVAX crashing 4.43%, DOGE dropping 7.41% and PEPE nosediving almost 6%, as per CoinMarketCap data.
Political Shockwave: Musk vs. Trump
Fueling the downturn was a very public clash between Elon Musk and US President Donald Trump. What began as a social media spat over economic policy quickly spiraled into broader market anxiety. Tesla’s stock dropped approximately 17% in a single session, dragging major indices down and putting downward pressure on crypto markets.
According to analyst Anr Taha, the timing of Tesla’s nosedive aligned closely with a spike in volatility across digital assets. “This was a clear sentiment contagion event,” Taha said. “Equities and crypto sold off in tandem — a pattern we’re seeing more often.”
Related: Crypto Market Cap Sheds $200 Billion From Trump-Musk Feud on U.S. Spending Bill
Whales Magnify Chaos, Move $600M Onto Exchanges
The chaos was further magnified by massive whale movements into centralized exchanges (CEXs). Over $600 million in crypto was shifted into CEXs, with 2,500 BTC hitting Binance followed by 80,000 ETH entering derivatives platforms, suggesting whales were preparing to sell or hedge.
Meanwhile, Santiment reported three mega-transactions on the Bitcoin network totaling more than $25.8 billion on June 1st and 2nd. These included:
- 130,010 BTC ($14.1B)
- 78,647 BTC ($9.4B)
- 22,531 BTC ($2.36B)
These transfers coincided with Bitcoin’s attempt to reclaim $107K, but instead marked a local top, triggering a flood of short trades and profit-taking.
Hidden Accumulation: Institutions Step In Quietly
Yet beneath the surface chaos, quiet accumulation is taking place. According to analyst BaykusCharts on CryptoQuant, 22,500 BTC were withdrawn from exchanges in early June — a significant on-chain signal.
“This isn’t retail panic-selling or speculation,” Baykus noted. “It’s long-term accumulation, likely from institutional players like ETF providers or OTC desks.”
Related: Capitol Hill Set for Major Crypto Policy Week with CLARITY Act in Focus
The lack of immediate price action despite such large withdrawals suggests a “strategic accumulation” phase, one where smart money is entering quietly, away from the noise.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
