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Why is CONY Down Today After Crypto Capitulation

The Yieldmax Coin Option Income Strategy ETF (CONY) closed down 1.87% at $13.12 on February 5th, as the cryptocurrency market grappled with heightened fear and volatility. The underlying asset, Coinbase (COIN), also saw a decline of 1.53% to $276.10. The broader cryptocurrency market is experiencing extreme bearish sentiment, marked by what analysts describe as the largest daily capitulation in its history. This has led to a significant drop in market capitalization from $10 trillion to $8.5 trillion, with Bitcoin and Ethereum experiencing sharp declines in price and increased selling volume. The fear and greed index plummeted to an extreme fear level of 10, reflecting a highly pessimistic outlook among investors. Additionally, regulatory concerns and macroeconomic conditions have contributed to the market's current state of fear, potentially leading to increased selling pressure and lower trading volumes.