Macro Fear May Weigh on Crypto Despite Signals

[chainsniff]

The current fear isn’t limited to crypto. Equities also hit “extreme fear” on Oct. 17, their lowest sentiment in six months.

Macro headwinds include:

Trump’s trade tensions with China

Recession and inflation fears from Fed policy

Still, Bitwise’s André Dragosch argues Bitcoin may hold up better:

“TradFi sentiment is catching up to the downside. Bitcoin once again the canary in the macro coalmine.”

That suggests BTC could remain resilient as a store of value, though analysts warn that being “greedy when others are fearful” carries risks if fear deepens.

[kelson10]

Wider economic uncertainty often suppresses short-term rallies even when on-chain data looks bullish.

[alex10]

Investors are likely holding back until inflation and rate outlooks stabilize globally.