History is gradually unfolding as China takes heads on the United States in the ongoing global trade wars. The CBOE Volatility Index (VIX) surged 11 percent in the past 24 hours to hover about 52.32, signaling further bearish sentiment for the S&P 500 and other major global stock indexes.

With the U.S. Customs and Border Protection having already implemented a 104 percent tariff on goods flowing from China, further selloff is anticipated after the New York market opens later today. Moreover, Beijing is likely to escalate the tariff war before potential diplomatic talks begin between the two behemoth economies to quell the fears.

Crypto Experience Extreme Fear

The wider crypto market has experienced significant volatility in the recent past, following an average 20 percent drop in U.S. stocks and major global stock indexes. With Bitcoin price signaling further weakness in the near term, the fear of further capitulation on the wider altcoin market is palpable. 

Moreover, on-chain data shows whale crypto investors have been on a selling spree causing further capitulation. In the past 24 hours, the overall crypto futures open interest (OI) dropped by 3 percent to hover about $92 billion at the time of this writing.

According to Coinmarketcap’s Fear and Greed index, the measure is currently at 15, which implies extreme fear from traders. The Bitcoin fear and greed index dropped to 18, which also implies extreme fear, as the BTC price dropped to $75k earlier today. 

Similarly, the Ethereum fear and greed index dropped to 20, which is also at extreme fear. Meanwhile, the memecoin fear and greed index is at 100, signaling extreme free from traders, amid anticipated market rebound ahead.

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Bigger Picture

Amid the ongoing global economic crisis, it is prudent to consider that the mainstream adoption of crypto assets has reached nation-states after overwhelming support from institutional investors. Already, the United States intends to tap into Bitcoin and some altcoins to boost its economy in the coming years.

However, a COVID-19 capitulation is likely in the coming days amid heightened fear and speculative selloff.