Broader market indicators confirm the cautious outlook, with the Crypto Fear & Greed Index remaining in “Extreme Fear” territory and scoring as low as 12. This suggests that investors are adopting a defensive stance, holding back capital amid uncertainty and volatility.

One potential factor influencing sentiment is the pending US CLARITY Act, a key piece of legislation that could shape future crypto regulation. Delays and ongoing debates around issues like stablecoin yield rules have added to market hesitation, keeping sentiment suppressed.