The crypto market extended its downturn on February 28. The global market capitalization fell 2.2% to $2.35 trillion, with total trading volume recorded at $104.9 billion. Sentiment hit a new low.
The Fear & Greed Index dropped from 13 to 11, remaining in the 'Extreme Fear' zone. While slightly better than last week's 8, the number underscores persistent caution among investors.
Bitcoin Trades Near $65K, Ethereum Underperforms
Bitcoin was at $65,799, down 1.95% over 24 hours, with a trading volume of $39.5 billion and a market cap of $1.31 trillion. BTC dominance stood at 56.1%. Ethereum slid 4.46% to $1,926.77, with a volume of $20.79 billion and a market cap of $232 billion. ETH dominance fell to 9.92%.
Among altcoins, Solana dropped 4.21% to $81.98, XRP lost 2.96% to $1.35. The biggest losers included Pippin (-17.07%), Zcash (-8.55%), and BitTorrent [New] (-4.92%).
Tokens that gained: Chiliz rose 3.51% to $0.03368, Virtuals Protocol gained 2.73% to $0.6895, and Pi Network climbed 2.30% to $0.1711. Sahara AI was the top gainer, surging 28.61% to $0.02086 on $434 million volume.
Stablecoins and DeFi See No Respite
Stablecoin market cap was $311 billion with $78 billion in trading volume, showing no net expansion. The DeFi sector contracted 2% to $48.8 billion, with $3.7 billion traded. DeFi dominance stood at 2.1%.
On the on-chain front, Tether froze $4.2 billion in USDT tied to illicit activity, including $61 million linked to pig butchering scams. USDT supply has surpassed $180 billion.
Regulatory and Institutional Moves Reshape Landscape
SEC Chair Paul Atkins said the agency is fixing past crypto policy gaps under Trump, advancing 'Project Crypto' and supporting blockchain payments. The White House ruled out a pardon for Sam Bankman-Fried. Block cut 4,000 jobs, ZachXBT exposed an insider trading case, and a U.S. senator probed Binance's Iran-linked flows.
On payments, MoonPay and M0 launched the PYUSDx framework for developers to issue app-specific stablecoins backed by PayPal USD. Barclays is exploring a blockchain payment platform, while JPMorgan and HSBC are expanding tokenized services.
Macro pressures persist: the U.S. core PPI rose 0.8% in January, with headline PPI up 0.5%, beating expectations and clouding the rate-cut outlook.
Current conditions reflect a market trapped between low liquidity and macro uncertainty. BTC holds relatively firm, but ETH and most alts face heavier selling. With the Fear index at 11, traders should watch volume, sentiment shifts, and regulatory news for short-term cues.