Geopolitical risk remains elevated as Israeli airstrikes on Iran triggered fresh market reversals, pushing BTC below $63k and the Fear & Greed Index to extreme fear levels of 8. The ongoing Iran war stalemate continues to drive dollar strength and risk-off sentiment across assets, with oil holding under $100 but supply chain disruptions persisting. Trump's ultimatum regarding US soldiers adds uncertainty, while eurozone GDP disappointment (-0.2% Q1) contrasts with resilient US data, maintaining the dollar's defensive bid.
Crypto markets are in full risk-off mode with extreme fear dominating sentiment (F&G Index: 8). Despite the selloff, BTC ETF flows remain remarkably strong with $1.74B inflows marking 7 consecutive positive days, suggesting institutional accumulation during weakness. DeFi activity is subdued with DEX volumes down 36.8% vs 7-day average, while stablecoin supply shows modest contraction across USDT (-0.68%) and USDC (-0.31%), indicating some deleveraging but no panic liquidations.