- The Crypto Fear & Greed Index sits at 21, deep in “Fear,” as traders brace for U.S. Core PCE inflation data.
- Bitcoin spot ETFs saw $708.7M in net outflows on January 21, while Ethereum ETFs lost $286.9M.
- Despite pressure, historical data shows Bitcoin often makes decisive moves on Thursdays, putting this week’s positioning under the spotlight.
The crypto market is showing clear signs of caution as the Crypto Fear & Greed Index sits at 21, firmly in “Fear” territory, reflecting widespread investor nervousness. Meanwhile, Bitcoin and Ethereum prices remain under pressure, with significant outflows from spot ETFs and important U.S. economic data due today.
Fear Dominates Investor Sentiment
The Crypto Fear & Greed Index, a popular gauge of market emotion, currently reads 21. This places it deep in the “Fear” zone, far from the “Greed” levels seen during bull runs. Historically, scores below 25 signal widespread caution among traders and investors.
In the meantime, markets are focused on today’s U.S. economic releases, including delayed Core PCE Price Index figures for October and November. Core PCE is the Federal Reserve’s preferred inflation measure.
A reading of 0.3% or higher month-on-month would be viewed as hawkish and could delay expectations for interest-rate cuts. A softer 0.1–0.2% print would support hopes for easier policy and potentially lift risk assets like crypto.
The Fed is widely expected to hold rates steady at its next meeting, with markets assigning only a 5% chance of a cut.
Bitcoin and Ethereum ETFs See Heavy Outflows on January 21
Spot ETFs saw major redemptions earlier this week. Bitcoin ETFs recorded net outflows of $708.71 million on January 21, while Ethereum ETFs saw $286.94 million leave the funds.
These are among the largest single-day outflows since the products launched, signaling that some institutional and retail investors are reducing exposure amid the uncertain macro backdrop.
The top 10 largest crypto liquidation events of all time reveal an important pattern: eight occurred in 2021, during that year’s extreme bull market and subsequent sharp corrections.
The biggest single event remains the $19.16 billion in liquidations tied to U.S. tariff news on China in late 2025.
By comparison, today’s market, while volatile, has not seen liquidation cascades on the same scale. However, it being a bull market, if history repeats, the market should expect heavy liquidations as part of manipulation by market makers.
Bitcoin Shows Strong Thursday Price Action
A CryptoQuant chart tracking Bitcoin’s performance by day of the week highlights consistent decisive moves on Thursdays.
Over the analyzed period, Thursdays frequently feature sharp directional swings, often upward, marked in green on the chart. The white line representing the BTC price shows several notable rallies and turning points that occur on Thursdays.
The pattern suggests that whatever momentum builds during the week often resolves decisively by mid-to-late week, making today’s session, one day before Thursday, particularly important for positioning.
Overall, the crypto market remains on edge. Fear is high, ETF flows are negative, and today’s inflation data could set the tone for near-term price action.
While volatility is elevated, historical context shows that the current environment is far less extreme than the wild swings of 2021.
