The crypto market is facing a major cooldown, with top coins like Bitcoin and Ethereum taking a hit. Bitcoin has dropped by about 3.4%, now trading near $110,800, while Ethereum is down by 4.5%, falling below the $4,000 mark. Overall, the total value of all cryptocurrencies has fallen by 4.4% in the past 24 hours, sitting at around $3.85 trillion.

**Bitcoin Nears Key Support Level**

Bitcoin is getting close to a key support point at $112,500 — a level that’s usually strong during bull markets. But this support has been tested four times in the last six weeks, which is making it weaker. Each time Bitcoin hits this level, it loses some strength and investors grow more cautious. If Bitcoin falls below this line, the next strong support could be around $103,500, which is roughly 10% lower.

**Geopolitical Tensions Add Pressure**

Tensions between the U.S. and China are also shaking the market. China’s recent comments about continuing the trade fight have made investors nervous again. This uncertainty has led to big withdrawals from Bitcoin ETFs in the U.S. — $326.5 million flowed out on October 13 alone. That’s a big shift compared to the strong inflows just a week earlier.

**Investor Mood Shifts from Greed to Fear**

Investor sentiment is turning negative fast. Earlier this week, most traders were feeling confident, but that changed quickly. A market sentiment tracker showed the “greed” level dropped below 50%, while “fear” climbed over 51%. This shows that many investors are becoming more risk-averse due to recent price drops and global tensions.

**Ethereum Burn Rate Rises but Price Lags**

Ethereum is showing some promising changes under the hood. Its network is burning more ETH than usual, and the total supply is slowly shrinking — supporting the idea that ETH might become deflationary over time. But right now, because the whole market is weak, these positive signs aren’t yet reflected in Ethereum’s price.

**What to Watch Next**

The market is at a turning point. Bitcoin is sitting on an important support level, and if it holds, we could see a short-term bounce. But if it breaks down, prices might dip further. With global issues and investor uncertainty on the rise, recovery may take time. In the long run, large institutional investors will play a big role in deciding where the market goes next.

For now, strong support levels are holding things up — but all eyes are on whether they can continue to do so in this fragile environment.