The crypto sector’s fear and greed index continued its decline, reaching the neutral zone at 56 as most coins pulled back. Bitcoin fell to $68,000, well below this month’s high of $73,500. Ethereum slipped to $2,400, while the total cryptocurrency market capitalization dropped to $2.28 trillion. Some of the weakest performers included Grass, Solana, Goat and Sui, each down by nearly 10% in recent months. Overall, cryptocurrencies tend to decline when the fear and greed index moves into the fear zone.
Trump odds decline
Those losses have occurred as investors await the upcoming U.S. general election, which could shape regulatory policy for years to come. Many crypto investors support Donald Trump because he is perceived as pro-crypto; he reportedly holds a crypto portfolio worth more than $6 million and has pledged to adopt crypto-friendly policies if elected. Polling in most swing states shows a tight race, making outcomes harder to predict. Prediction market leader Polymarket currently assigns Trump a 55% chance of winning. Although this is a meaningful probability, it is down from last week’s peak of 67%, indicating his odds have fallen. Ongoing crypto weakness suggests investors are increasingly worried that Harris might win. That concern helps explain the recent plunge in shares of Trump Media & Technology (DJT). Similarly, Trump-themed tokens such as MAGA, TRUMP and DJT have seen double-digit declines. Beyond the U.S. election, crypto markets are also reacting to the Federal Reserve’s upcoming interest-rate decision, where officials are expected to cut rates by 0.25% after a previous 0.50% reduction at the last meeting. Historically, cryptocurrencies have tended to perform well when the Fed cuts rates.
Vantard token sale gains momentum
Not all crypto projects are struggling. Vantard, a project inspired by Vanguard, has shown strong momentum as its token sale accelerates. The project has already raised more than $304,000 from investors and could become one of this year’s most successful ICOs. Vantard’s appeal centers on its plan to create an index fund for meme coins. While most meme coins lack intrinsic utility, they have a record of outperforming established tokens at times, including catches of attention and rapid price appreciation relative to assets such as Chainlink, Solana and Binance Coin. Popular meme coins this year include Popcat, Dogwifhat, GOAT and Brett, which have seen strong gains—some soaring more than 1,000%—helping push the combined meme coin market capitalization past $60 billion. Vantard draws inspiration from Vanguard, the asset manager that has grown into an $8 trillion powerhouse largely thanks to its ETFs and mutual funds. For example, the Vanguard S&P 500 ETF (VOO) has accumulated more than $500 billion in assets, a figure that has continued to climb in recent months. Vantard’s flagship token is $VTARD, which represents a pool of popular cryptocurrencies. Token holders will reportedly be able to redeem tokens against the fund’s treasury. As a result, Vantard’s token could have a resilient outlook even if the Fed continues to cut rates in coming months. It may also benefit from post-election stability and the traditional year-end rally.